Cross-Border Property Rights and the Globalization of Innovation

Abstract We identify strong cross-border property rights as a driver for the globalization of innovation. Using 67 million patents from over 100 patent offices, we construct novel measures of the three stages of innovation diffusion: adoption, sourcing, and collaboration. Exploiting staggered bilateral investment treaties (BITs) as shocks to cross-border property rights, we show that signatory countries increase technology adoption and sourcing from each other; they also increase R&D collaborations. The results are particularly strong for countries with weak domestic institutions and technologies with high imitation risks. Increases in R&D-related foreign investments explain most of the results.

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Publication Details

Journal
Journal of Financial and Quantitative Analysis
Published
2025-07-01
DOI
https://doi.org/10.1017/s0022109024000735
Citations
3
Primary Topic
Intellectual Property and Patents
Type
article
Field-Weighted Citation Impact
8.28
Controls
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article

Cross-Border Property Rights and the Globalization of Innovation

Ting Xu, Bo Bian, Jean‐Marie Meier
3 citations
Journal of Financial and Quantitative Analysis
Intellectual Property and Patents
8.28
article

Cross-Border Property Rights and the Globalization of Innovation

Ting Xu, Bo Bian, Jean‐Marie Meier
article en
3 citations

Abstract

Abstract We identify strong cross-border property rights as a driver for the globalization of innovation. Using 67 million patents from over 100 patent offices, we construct novel measures of the three stages of innovation diffusion: adoption, sourcing, and collaboration. Exploiting staggered bilateral investment treaties (BITs) as shocks to cross-border property rights, we show that signatory countries increase technology adoption and sourcing from each other; they also increase R&D collaborations. The results are particularly strong for countries with weak domestic institutions and technologies with high imitation risks. Increases in R&D-related foreign investments explain most of the results.

Journal of Financial and Quantitative AnalysisVol. 60(5)
National Bureau of Economic Research (US), University of British Columbia (CA), The University of Texas at Dallas (US), University of Toronto (CA)
Openalex Percentile: Top 3%
Intellectual Property and Patents
8.28
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Cross-Border Property Rights and the Globalization of Innovation — Ting Xu, Bo Bian, et al. · Journal of Financial and Quantitative Analysis (2025) | TGRS Research Map | TGRS