Title:From Made-in-China to Invented-in-China: Does Patenting Overseas Help Exports?

Speaker: Ran Jing

Abstract:China's overseas patents grew explosively recently. This paper studies how patenting overseas affect firms' exports. We study this question by merging patent data from European Patent Office and China's firm-level exports data. It is found that exports in value are positively affected by the number of effective patents in export markets of the exporter. However, this positive effect mainly comes from the increase in export quantity rather than higher prices, which is inconsistent with the high monopolist profits predicted by the traditional market power effect. This puzzling finding could be explained by Bertrand Competition Model which relies on an important feature of Chinese overseas patents—a majority of patents belong to information and communication technology sectors. It is also found that export prices dropped as patents expire in the export markets. We also present the impact of patenting identified by time-variation for each firm within its product-country markets. Overall, we find firm's heterogeneity at product level, particularly its time variation, plays an important role on the relationship between patents and exports.

AboutRan Jing: She is an Associate Professorin School of International Trade and

Economics at University of International Business and Economics.She completed her Ph.D. in Economics at University of British Columbia. Her research focuses onInternational Trade, Applied Microeconomics, and Industry Organization Theory.

Date: May, 12,2016

Time:15:40-17:00 PM

Location:Room 608, Academic Hall, CUFE