The role of technological capabilities and gap in the cross-country patenting: an empirical investigation

Abstract

This study examines the factors stimulating the cross-country patenting activity post the Trade-Related Intellectual Property Rights (TRIPS) agreement in 1995. In particular, we investigate the role of technological capabilities and technological gap between the home and host country in determining bilateral foreign patenting. We adopt an augmented gravity model approach for sample of 36 countries from 2001 to 2015. Using a negative binomial regression model, we find that technological capabilities of home countries positively influence their patenting activities in other countries. Further, the high technological gap between the host and the home countries reduces the inflow of patents to the destination countries. © 2021, The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.