Estimating the Effects of Patent Internationalization on the Export of Science and Technology Services: Evidence from China

Abstract

In contemporary society, economic development not only relies on the traditional factors of production, but on technology and innovation capacity. The internationalization of patents, as an indicator of one country's technology development, has been highly emphasized nowadays. In recent years, China has made achievements and ranked second place in the world with large number of patent applications. In the context of China’s falling growth rate of trade in Goods, the trade in science and technology services with high added value and intensive intelligence creates new significant trade growth. This paper examined the effects of the internationalization of patents on the export of China’s science and technology services with the data of 36 trade partners from 2005 to 2014 in use of gravity model. The results indicated that the internationalization of patents had a significant positive impact on the trade in science and technology services. Therefore, China should facilitate the internationalization of patents process by encouraging more external patent applicant representatives to enter the industry of science and technology service.