Does the Increase in the Number of Registered Patents Affect Economic Growth? - Evidence from Romania and Bulgaria
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Abstract
The goal of this paper is to determine whether the increase in the number of registered patents per million inhabitants, as a measure of market verification of the results of R&D activities, affects economic growth and the increase in the country's innovation index. The empirical research covered two countries - Romania and Bulgaria. Given that the main task in the research was to accurately measure the investigated phenomena and discover the connection between them, the analysis was based on a quantitative research design. The analysis used secondary data from the international databases of the World Bank and World Intellectual Property Organization, covering the period from 2008 to 2018. The results of the empirical research showed that no correlations were found, which means that in the cases of Romania and Bulgaria, there is no dependence between the increase in the number of registered patents per million inhabitants and the growth of the innovation index and GDP per capita.
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References
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Atun, R.A., Harvey, I., & Wild, J. (2007). Innovation, patents and economic growth. International Journal of Innovation Management, 11(02), 279-297.
Blind, K., & Jungmittag, A. (2008). The impact of patents and standards on macroeconomic growth: a panel approach covering four countries and 12 sectors. Journal of Productivity Analysis, 29(1), 51-60.
Blind, K., Ramel, F., & Rochell, C. (2021). The influence of standards and patents on long-term economic growth. The Journal of Technology Transfer, 1-21.
Candelin-Palmqvist, H., Sandberg, B., & Mylly, U.M. (2012). Intellectual property rights in innovation management research: A review. Technovation, 32(9-10), 502-512.
Caseiro, C., & Simões, M.C.N. (2019). Business Sector Innovation and Economic Growth a Comparative Analysis Between EU Countries. Economic Analysis, 52(1), 1-22
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Domazet, I., Marjanović, D., & Ahmetagić, D. (2022). The Impact of High-Tech Products Exports on Economic Growth: The Case of Serbia, Bulgaria, Romania and Hungary. Ekonomika preduzeća, 70(3-4), 191-205.
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Eliasson, G., Johansson, D., & Taymaz, E. (2004). Simulating the new economy. Structural Change and Economic Dynamics, 15(3), 289-314.
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Iwaisako, T., & Futagami, K. (2013). Patent protection, capital accumulation, and economic growth. Economic Theory, 52(2), 631-668.
Josheski, D., & Koteski, C. (2011). The causal relationship between patent growth and growth of GDP with quarterly data in the G7 countries: cointegration, ARDL and error correction models. https://mpra.ub.uni-muenchen.d /33153/1/MPRA_paper_33153.pdf
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Moser, P. (2013). Patents and innovation: evidence from economic history. Journal of Economic Perspectives, 27(1), 23-44.
Myszczyszyn, J. (2020). The Long-run Relationships between Number of Patents and Economic Growth. European Research Studies, 23(3), 548-563.
Nae, G.G., & Grigore, C. (2014). Economic growth at regional level and innovation: Is there any link? Global Journal of Business, Economics and Management, 4(1), 16-21.
Nguyen, C.P., & Doytch, N. (2022). The impact of ICT patents on economic growth: An international evidence. Telecommunications Policy, 46(5).
OECD. (2004). Patents and innovation: Trends and policy challenges. OECD Publishing.
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Pelinescu, E. (2017). The Impact of Human Capital on Innovation and Economic Growth in Romania. Internal Auditing & Risk Management, 12(2), 44-50.
Pradhan, R.P., Arvin, M.B., Nair, M., & Bennett, S.E. (2020). Sustainable economic growth in the European Union: The role of ICT, venture capital, and innovation. Review of Financial Economics, 38(1), 34-62.
Pradhan, R.P., Arvin, M.B., Nair, M., Bennett, S.E., & Hall, J.H. (2019). The information revolution, innovation diffusion and economic growth: an examination of causal links in European countries. Quality & Quantity, 53(3), 1529-1563.
Rubilar-Torrealba, R., Chahuán-Jiménez, K., & de la Fuente-Mella, H. (2022). Analysis of the Growth in the Number of Patents Granted and Its Effect over the Level of Growth of the Countries: An Econometric Estimation of the Mixed Model Approach. Sustainability, 14(4).
Saini, A.K., & Jain, S. (2011). The Impact of Patent Applications Field on Sustainable Development of Selected Asian Countries. International Journal of Information Technology, 3(2), 358-364.
Schmookler, J. (2013). Invention and economic growth. Harvard University Press.
Silaghi, M.P., & Medeşfălean, R. (2014). Some insights about determinants of economic growth in Romania. An empirical exercise. Theoretical & Applied Economics, 21(6), 23-36.
Sinha, D. (2008). Patents, innovations and economic growth in Japan and South Korea: evidence from individual country and panel data. Applied Econometrics and International Development, 8(1), 1-23.
Word Bank. (2010). Bulgaria's Hidden Growth Potential lies in Research, Innovation and Technology. https://www.worldbank.org/en/news/press-release/2010/06/21/bulgarias-hidden-growth-potential-lies-research-innovation-technology
World Bank. (2022). Charting a Path to Future Prosperity with the Long Term Growth Model. https://www.worldbank.org/en/news/feature/2022/02/15/charting-a-path-to-future-prosperity-with-the-long-term-growth-model/
Wurster, M. (2021). Intellectual property – How key technology patents stimulate economic growth. https://globaleurope.eu/globalization/intellectual-property-how-key-technology-patents-stimulate-economic-growth/
Alnuaimi, T., Singh, J., & George, G. (2012). Not with my own: Long-term effects of cross-country collaboration on subsidiary innovation in emerging economies versus advanced economies. Journal of Economic Geography, 12(5), 943-968.
Atun, R.A., Harvey, I., & Wild, J. (2007). Innovation, patents and economic growth. International Journal of Innovation Management, 11(02), 279-297.
Blind, K., & Jungmittag, A. (2008). The impact of patents and standards on macroeconomic growth: a panel approach covering four countries and 12 sectors. Journal of Productivity Analysis, 29(1), 51-60.
Blind, K., Ramel, F., & Rochell, C. (2021). The influence of standards and patents on long-term economic growth. The Journal of Technology Transfer, 1-21.
Candelin-Palmqvist, H., Sandberg, B., & Mylly, U.M. (2012). Intellectual property rights in innovation management research: A review. Technovation, 32(9-10), 502-512.
Caseiro, C., & Simões, M.C.N. (2019). Business Sector Innovation and Economic Growth a Comparative Analysis Between EU Countries. Economic Analysis, 52(1), 1-22
Crosby, M. (2000). Patents, innovation and growth. Economic Record, 76(234), 255-262.
Dang, J., & Motohashi, K. (2015). Patent statistics: A good indicator for innovation in China? Patent subsidy program impacts on patent quality. China Economic Review, 35, 137-155.
Domazet, I., Marjanović, D., & Ahmetagić, D. (2022). The Impact of High-Tech Products Exports on Economic Growth: The Case of Serbia, Bulgaria, Romania and Hungary. Ekonomika preduzeća, 70(3-4), 191-205.
Domazet, I., Marjanović, D., Ahmetagić, D., & Bugarčić, M. (2021). The Impact of Innovation Indicators on Increasing Exports of High Technology Products. Ekonomika preduzeća, 69(1-2), 31-40.
Eliasson, G., Johansson, D., & Taymaz, E. (2004). Simulating the new economy. Structural Change and Economic Dynamics, 15(3), 289-314.
Ersin, Ö., Ustabaş, A., & Acar, T. (2022). The Nonlinear Effects Of High Technology Exports, R&D And Patents On Economic Growth: A Panel Threshold Approach To 35 OECD Countries. Romanian Journal of Economic Forecasting, 25(1), 26-44.
European Patent Office (EPO). (2022). Bulgaria marks 10 years of membership in the European Patent Organisation. https://www.epo.org/news-events/news/2012/20121022.html
Hair, J.F., Black, W.C., Babin, B.J., & Anderson, R.E. (2014). Multivariate Data Analysis. Harlow: Pearson Education.
Hasan, I., & Tucci, C.L. (2010). The innovation–economic growth nexus: Global evidence. Research policy, 39(10), 1264-1276.
Iwaisako, T., & Futagami, K. (2013). Patent protection, capital accumulation, and economic growth. Economic Theory, 52(2), 631-668.
Josheski, D., & Koteski, C. (2011). The causal relationship between patent growth and growth of GDP with quarterly data in the G7 countries: cointegration, ARDL and error correction models. https://mpra.ub.uni-muenchen.d /33153/1/MPRA_paper_33153.pdf
Maradana, R.P., Pradhan, R.P., Dash, S., Gaurav, K., Jayakumar, M., & Chatterjee, D. (2017). Does innovation promote economic growth? Evidence from European countries. Journal of Innovation and Entrepreneurship, 6(1), 1-23.
Marjanović, D., Ahmetagić, D., & Beraha, I. (2019). Comparative Analysis of High Technology Exports and Selected Innovation Indicators for Serbia and CEE Countries. Economic Analysis, 52(2), 93-103.
Moser, P. (2013). Patents and innovation: evidence from economic history. Journal of Economic Perspectives, 27(1), 23-44.
Myszczyszyn, J. (2020). The Long-run Relationships between Number of Patents and Economic Growth. European Research Studies, 23(3), 548-563.
Nae, G.G., & Grigore, C. (2014). Economic growth at regional level and innovation: Is there any link? Global Journal of Business, Economics and Management, 4(1), 16-21.
Nguyen, C.P., & Doytch, N. (2022). The impact of ICT patents on economic growth: An international evidence. Telecommunications Policy, 46(5).
OECD. (2004). Patents and innovation: Trends and policy challenges. OECD Publishing.
Pelinescu, E., Pauna, C., Saman, C., & Diaconescu, T. (2019). Human capital, innovation and economic growth in the EU countries. Romanian Journal of Economic Forecasting, 22(4), 160-173.
Pelinescu, E. (2017). The Impact of Human Capital on Innovation and Economic Growth in Romania. Internal Auditing & Risk Management, 12(2), 44-50.
Pradhan, R.P., Arvin, M.B., Nair, M., & Bennett, S.E. (2020). Sustainable economic growth in the European Union: The role of ICT, venture capital, and innovation. Review of Financial Economics, 38(1), 34-62.
Pradhan, R.P., Arvin, M.B., Nair, M., Bennett, S.E., & Hall, J.H. (2019). The information revolution, innovation diffusion and economic growth: an examination of causal links in European countries. Quality & Quantity, 53(3), 1529-1563.
Rubilar-Torrealba, R., Chahuán-Jiménez, K., & de la Fuente-Mella, H. (2022). Analysis of the Growth in the Number of Patents Granted and Its Effect over the Level of Growth of the Countries: An Econometric Estimation of the Mixed Model Approach. Sustainability, 14(4).
Saini, A.K., & Jain, S. (2011). The Impact of Patent Applications Field on Sustainable Development of Selected Asian Countries. International Journal of Information Technology, 3(2), 358-364.
Schmookler, J. (2013). Invention and economic growth. Harvard University Press.
Silaghi, M.P., & Medeşfălean, R. (2014). Some insights about determinants of economic growth in Romania. An empirical exercise. Theoretical & Applied Economics, 21(6), 23-36.
Sinha, D. (2008). Patents, innovations and economic growth in Japan and South Korea: evidence from individual country and panel data. Applied Econometrics and International Development, 8(1), 1-23.
Word Bank. (2010). Bulgaria's Hidden Growth Potential lies in Research, Innovation and Technology. https://www.worldbank.org/en/news/press-release/2010/06/21/bulgarias-hidden-growth-potential-lies-research-innovation-technology
World Bank. (2022). Charting a Path to Future Prosperity with the Long Term Growth Model. https://www.worldbank.org/en/news/feature/2022/02/15/charting-a-path-to-future-prosperity-with-the-long-term-growth-model/
Wurster, M. (2021). Intellectual property – How key technology patents stimulate economic growth. https://globaleurope.eu/globalization/intellectual-property-how-key-technology-patents-stimulate-economic-growth/