Abstract
The time series methodology with structural change is implemented to analyse the presence of breaks in the patenting level - of both residents and non-residents - for a large set of countries and world regions from 1963 to 2011. The international agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs), underwritten in 1994, seeks to reinforce the protection of intellectual property rights and so stimulate the patenting activity, mainly in developing countries. From the estimated breakpoints, we find that the TRIPs convention has effectively prompted innovation in both developed and developing countries. Several economies and some world regions report a positive level shift in patenting after the TRIPs agreement, suggesting that the international transfer of technology is increasing. Residents' series for North America and European Union members estimate breakpoints by 1994 and 1997, while non-residents' series of the European Union and South Asia select 1994 and 2003, respectively.
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