Innovative activity in NAFTA and EU countries: an analysis of structural change in patent granted trends

This paper analyzes innovative activity in North America and European Union (EU) countries by means of the number of patents granted from 1965 to 2005. Making use of the database released by the World Intellectual Property Organization (WIPO), we search for presence of a structural change patent granted series. It is argued that patent activity in North America and EU countries has followed a different pathway, affecting firms’ innovative capabilities and competitiveness. In North America, the new rules characterizing the United States’ intellectual property regimen have influenced Canada’s and Mexico’s intellectual property regimes through North America Free Trade Agreement (NAFTA) and Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreements. In the EU region, the establishment of the European Patent Office (EPO) has allowed for multi-country patent rights, attracting high-quality patent applications and generating more valuable patents.