Working Paper: NBER ID: w24207
Authors: Bronwyn Hall; Christian Helmers
Abstract: We analyze the impact of accession to the regional patent system established by the European Patent Convention (EPC) on 14 countries that acceded between 2000 and 2008. We look at changes in patenting behavior by domestic and foreign applicants at the national patent offices and the European Patent Office (EPO). Our findings suggest a strong change in patent filing behavior among foreigners seeking patent protection in the accession states, substituting EPO patents for domestic patents immediately. However, there is little evidence that accession increased FDI by patenting foreign companies in accession countries. Moreover, there is no discernible reaction among domestic entities in terms of domestic filings, although we do find some evidence that applicants in accession states increased their propensity to file patents with the EPO post-accession. Inventor-level information suggests that the underlying inventions originate in the accession states
Keywords: intellectual property rights; patenting behavior; European Patent Convention; foreign direct investment
JEL Codes: F53; F55; O34
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Accession to the EPC (F55) | Reduction in patent filings by foreign entities (F23) |
| Accession to the EPC (F55) | Decline of 70% in nonresident applications (I23) |
| Accession to the EPC (F55) | Further decline of 17% per year in nonresident applications (I23) |
| Accession to the EPC (F55) | Little evidence of drop in patent filings by domestic entities (O34) |
| Accession to the EPC (F55) | Modest increase in EPO filings by domestic entities (O39) |
| Accession to the EPC (F55) | Gradual increase in patented inventions in accession countries (O39) |