|M.Sc Student||Shemesh Miri|
|Subject||Pattern of International Patent Registration|
|Department||Department of Industrial Engineering and Management||Supervisor||Dr. Benjamin Bental|
|Full Thesis text - in Hebrew|
This research examines the variables that may explain the incentives that motivate inventors to apply for patent protection in any particular foreign country. The existing literature indicates in general that the size of a country is likely to affect foreign patent applications. There is no research dealing with this question at the level of economic sectors. This research is attempting to fill this gap.
Two main questions are researched. First, whether at the aggregate level the destination country's GDP affects foreign patent applications. Second, whether relative shares of non-resident patent applications are related to shares of export, import, resident patents and added value either across sectors or across countries.
In examining the above questions, raw data from 30 OECD countries plus Israel was used for the period of 1994 - 2000. The data pertaining to patents classifications (IPC) are based on technology classifications and needed to be related to the economic variables which are classified by "sector of use" (export/import) or "industry of manufacture" (added value). For that purpose the OECD Technology Concordance (OTC), which translates the patents classifications to sectors of use, was applied.
The firs part of the results indicates a strong relation between the destination country's GDP and the extent of foreign patent applications in that country. The GDP regression also works on sectors and technological intensity levels. Other regressions found no connection between GDP per capita or population, as explanatory variables to non-resident patent applications. This is interpreted as evidence that the purchasing power, expressed by total GDP, provides the incentive to ask for protection in a specific country.
At the sectoral level, the regression of shares of foreign patent applications and export shares, grouped by technological intensity levels, indicate that there is a strong positive empirical connection between export shares and foreign patent application shares within technological intensity levels and that the strength of this relation depends on the technological intensity of the various sectors. Import shares and foreign patent applications shares by technological intensity levels revealed a weak connection. This finding supports the hypothesis that foreigners are mainly concerned about competition in third countries rather than direct competition at the target country.