Spatio-temporal evolution, country differences and the role of proximity: an investigation of international patenting

International patenting involves seeking patent protection in multiple countries or regions outside the assignee’s nation. This paper examines the evolution and dynamics of international patenting networks (IPNs) using data on cross-border patent grants from the World Intellectual Property Organization database. Employing social network analysis and a quadratic assignment procedure (QAP), the study analyzes IPNs from 1995 to 2020. The findings reveal a significant globalization of patents, with a shift in the centers of gravity for outward-bound international patenting from the West to the East. The IPNs exhibit a small-world phenomenon, illustrating the interconnectedness and efficiency of patent flows globally. Asian countries, particularly in Southeast Asia, have gained increasing importance in patenting activities, reflecting the evolving landscape of economic globalization. However, a few countries still dominate worldwide patent activity, leading to an asymmetrical international patent relationship between high-income (HI) countries and non-HI countries. Developed countries serve as expanders, while developing countries primarily act as absorbers of patented technologies. QAP analysis indicates that trade, institutional, language, and technological proximities were all found to contribute to the formation of outward-bound IPNs, while political and economic proximities had varying effects. Surprisingly, geographical proximity exhibits a counterintuitive positive effect. These findings provide important implications for international economic policy.