Intangible property as well as tangible property have become pivotal components in the market economy and in the international digital era. Compared to tradable goods and services in the traditional economic system, the importance of intangible assets has gradually increased across the borders, where the ownership of Intellectual Property Rights (IPR) can directly lead to incentives for inventors. Along with the increase in the number of patent applications of new technology since 2000, the patent data can be used as one of the indicators reflecting the degree of technological development. Due to the territorial principle of patent rights, the inventors (firms or individuals) who seek for the enforcement of patent rights in foreign countries are required to submit patent applications, direct foreign applications (via a regional route or a national route) or Patent Cooperation Treaty (PCT) international applications, to the desired countries. Under the country-specific environment of IPR, ;;international patent” does not exist, but the procedures for foreign or international patent application are available for the initiation of the cross-border ownership of patent rights.Each country has its unique feature of innovative activities and IP-related market structure, even though there have been cooperative efforts to harmonize the variety of domestic patent rules and regulations with an international standard driven by World Intellectual Property Organization (WIPO) and World Trade Organization (WTO). Accordingly, it is crucial to review the characteristics of countries indicating the noticeable activities of international patent applications not only from technological aspects but also from economic aspects. In this study, the data of international patent applications is selected and examined to present the innovation status of each country. More specifically, the pattern of international patent applications and its entry in the designated foreign country are interpreted in terms of the international trade, particularly intensive and extensive margins of the potential exports, considering the circumstance that application and registration of patent rights are an essential prerequisite for the certain products (inventions) to be exported henceforth.Therefore, to understand the complex dynamics of the global patenting behavior, first, the patent statistics is investigated from several different aspects: types of applicants, either residents or non-residents; types of application options, either a direct route or a PCT route; and types of offices, the Receiving Offices (RO) for initially filing PCT international applications based on the applicant’s origin, and the designated offices for finally accepting the PCT applications, PCT national phase entry (NPE) at destination. Second, after dealing with the general trends of patent statistics since 2000, the data is focused on the linkage between the PCT international applications from the quantitative approach and PCT NPEs from the qualitative approach. The question of how the international patent applications are related to intensive margin and extensive margin is empirically approached by tracing the number of patents applied through the PCT system whether to enter the national stage. In addition, the result for simple regression analysis by year presents that the interaction between Gross Domestic Product (GDP) per capita and the number of PCT international applications is statistically significant and has the positive relationship. The simple regression analyses based on the aggregate data since 2000 are also statistically significant and indicate the positive relationships for the following three interactions between GDP per capita and intensive margin, between GDP per capita and extensive margin, and between GDP per capita and the total number of patents duplicated in multiple countries.
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Analysis on PCT International Patent Application by Country and its Significance from 2000 to 2018
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