International Patenting, Patent Rights, and Technology Gaps

International patenting activity is a source of international technology diffusion.� However, technology diffuses imperfectly and technology gaps exist between nations.� Indeed patenting activity is largely concentrated in developed countries.� A gap also exists in patent protection levels across countries, being weak in largely developing countries.� Hence this paper studies the extent to which the strengthening and harmonization of patent rights would stimulate international patenting and help narrow technology gaps.� International total factor productivity (TFP) differences are used as measures of technology gaps.� The paper develops and estimates a model of international patenting and TFP behavior using a panel data set of 44 countries, developed and developing, over the period 1975 - 2005.� Of these countries, 25 of them will serve as �source countries� (i.e., the source of technologies).� Overall, however, the paper finds that international patent reforms (even those that involve major regime changes) have relatively modest effects on the technology gap between developed and developing nations