Non-resident patents, and knowledge spillovers: citation-based analysis for Indian firms

Abstract

This study investigates the impact of foreign patents on knowledge spillovers to domestic firms in India using patent citation data. It analyses a panel dataset of 250 Indian firms and 5309 patents granted by the U.S. Patent Office to Indian assignees between 1990 and 2016. The findings reveal a positive relationship between foreign patenting and knowledge flows from foreign patents to domestic firms. However, the study does not find any significant influence of TRIPS-related policy changes in 1998, 2002, and 2005 on knowledge spillovers. Additionally, firm-level characteristics such as size and patent stocks play a significant role in knowledge spillovers. The study emphasise that policy changes alone may not be sufficient to promote knowledge spillovers and underscores the importance of fostering innovation, enhancing the absorptive capacity of Indian firms, and raising awareness about the benefits of utilising patent documents for knowledge acquisition.

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