Explaining the Patenting Propensity: A Regional Analysis Using EPO-OECD Data

The aim of this chapter is to conduct an empirical study of the patenting propensity at the European regional level using the OECD-REGPAT dataset. We use patent applications by inventor's region as, in this case, linkage to the territory is stronger than using applicant's region. Data analysis reveals the existence of a deep, uneven distribution of patent applications, R&D expenditure and human capital. Richer regions show higher levels of both private and public R&D expenditure as well as a consistent share of the total European patent applications. Starting from the analysis of these key variables, we proceed explaining the determinants of patenting propensity. The results substantially confirm the significant role of R&D expenditure on patenting activity: mainly the business enterprises, but also the government sector component. Human capital variables show similar positive effect, while average enterprise size seems not to play a determining role in patent applications.