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.
Authors
- Ting Xu (ORCID: https://orcid.org/0000-0001-6893-0405)
- Bo Bian
- Jean‐Marie Meier (ORCID: https://orcid.org/0000-0002-8176-8403)
Institutions
- National Bureau of Economic Research (US)
- University of British Columbia (CA)
- The University of Texas at Dallas (US)
- University of Toronto (CA)
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