New Claims and Local progress: Evidence from US Patent

Abstract

The research examines how international competition particularly Chinese economic expansion during the past three decades influences US corporate patent development. Our research explores the effects of rising import exposure on both innovation activities and patent registration and R&D budget expenditure of U.S. businesses. Data shows that more than three quarters of U.S. Patents show decreasing production rates among import-competition-prone industries especially in firms that start with less profit and lower capital investment. The U.S. patent system uses USPTO together with U.S. District Courts and USITC to manage patent disputes for preserving patent legitimacy. An empirical investigation employing U.S. patent database at a thirty-year time span evaluated how foreign competition influenced U.S. patent development. We examined how corporate entities file patents across different sectors under varying extents of import competition in our research. Firms that possess large R&D budgets demonstrate stronger resistance against foreign competition but smaller companies face higher risk from offshore pressures thereby affecting their capacity to innovate. Smaller ventures need strengthened backing alongside better-defined patent approval tests while faster patent dispute resolution can reduce foreign market effects on businesses. The US patent system needs innovation support through specific research and development incentives combined with regulatory adjustments to maintain fair competition in order to preserve its strength.