Determinants of locational patenting behavior of Canadian firms

Using a unique data set combining Canadian and U.S patent data with firm-level data, we analyze Canadian firms' locational patenting decisions during the period 2000-2008. We find that the likelihood of Canadian firms' patenting in both the U.S. and Canada is associated with past patenting experience, firm size, profitability and patent scope. While manufacturing firms in export intensive industries are more likely to patent in both countries, firms in Foreign Direct Investment intensive industries are more likely to patent domestically. Finally, Canadian Intellectual Property Office's role as an International Search Authority under the Patent Cooperation Treaty (PCT) is associated with an increase in the use of PCT by Canadian firms.