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The Effect of Patent Grant on the Geographic Reach of Patent Sales

Author

Listed:
  • Drivas, Kyriakos
  • Fafaliou, Irene
  • Fampiou, Elpiniki
  • Yannelis, Demetrius
Abstract
This paper examines whether patents increase the geographic reach of the market for ideas. By employing a dataset of 25,127 US patents traded between US located firms, we find that patents sold during application phase are less likely to be traded outside the seller‟s state than patents that have been issued. To tackle the endogeneity issues we employ coarsened exact matching techniques. We find that patent grant increases the likelihood of a patent to be traded across boundaries of the state. This evidence is stronger for patents originating from the less innovative US states.

Suggested Citation

  • Drivas, Kyriakos & Fafaliou, Irene & Fampiou, Elpiniki & Yannelis, Demetrius, 2014. "The Effect of Patent Grant on the Geographic Reach of Patent Sales," MPRA Paper 60099, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:60099
    as

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    File URL: https://mpra.ub.uni-muenchen.de/60099/1/MPRA_paper_60099.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    patent grant; patent applications; market for patents; geographic reach of technology; coarsened exact matching;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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