Globalization of innovation production: A patent-based industry analysis

Abstract

Using patent-based indicators, this paper aims to explain the extent to which the production of innovation is globalized. First, it provides evidence—over time, across countries and across industrial sectors—on the patterns in international technological collaboration and in cross-border ownership of innovation. Second, a fractional logit model is estimated for a unique panel dataset covering patent information for 21 industries in 29 countries in the period 1980–2005. The results show that countries tend to be more globalized in industrial sectors in which they are less technologically specialized. It suggests that globalization of innovation is a means of acquiring competences abroad that are lacking at home, rather than a way to exploit home technological strengths. The empirical findings also indicate that the intensity of globalization of innovation is higher in multidisciplinary country–industry pairs and in those which compete internationally in trade.