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- W142586933 abstract "Since the fall of the Berlin Wall in 1989, International Co-Invention – characterized by patentapplications where at least one of the co-inventor is foreign – has boomed in Central andEastern Europe (CEE). A significant number of these patents arise out of various forms of R&Dcollaboration or cooperation with multinational enterprises. We see this as part of a newinternational division of labor, where incremental innovation, measured by the number of patentapplications at the European Patent Office (EPO) or at the US Patent and Trademark Office(USPTO), is sharply rising in few low-wage countries besides CEE, namely China and India.We explain this phenomenon for CEE, building on the concept of “idea gap” elaborated byRomer (1993). In fact, we argue that under the influence of the Soviet Union, regional inventorsin Central and Eastern European countries were highly skilled and educated, but insufficientlyconnected to centers of technological excellence in the Western World in order to reach theirpotential of research productivity. Hence, large western multinational enterprises, which havebeen investing heavily in the region since the fall of the Iron Curtain, worked as conduits byhiring regional inventors at relatively low wages to match knowledge and skills from the Eastwith the complementary intellectual and financial assets in the West. According to our view,FDI helped Central and Eastern European economies to narrow the “idea gap” that wasgnawing regional inventors in the early 1990s and gave the start to international co-invention.In this paper, we show that in CEE internationally co-invented patents receive a higher numberof citations than those indigenously created and thus are of better quality, even at the moststringent level of confidence, both for data from the EPO and from the USPTO. We also build aneconometric model to test whether FDI Stocks in CEE might cause, or at least be stronglycorrelated with, the boom in international co-invention observed in CEE since the mid-1990s.Our results show that there is a positive and very statistically significant correlation between theboom of internationally co-invented patents and the sharp rise of Foreign Direct Investments,while R&D Expenditure and Industrial Output seem to have much more explanatory power inpredicting the total count of patents attributed to Central and Eastern European inventors." @default.
- W142586933 created "2016-06-24" @default.
- W142586933 creator A5005395888 @default.
- W142586933 date "2010-11-11" @default.
- W142586933 modified "2023-09-23" @default.
- W142586933 title "International Co-Invention in Central and Eastern Europe: the Role of Foreign Direct Investment" @default.
- W142586933 doi "https://doi.org/10.1184/r1/6471599.v1" @default.
- W142586933 hasPublicationYear "2010" @default.
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