Abstract

The effects of patents as indicators for innovations and standards on German trade performance are analysed in general and German–British trade in detail. The latter analysis goes a step further than the approach of Swann et al. (1996) and is based on a broader and more detailed database. The results show that Germany's export performance can primarily be explained by its innovative capacity and only to a small extent by its strength in standards. Furthermore, the results underscore the common view of the trade-fostering effect of international standards, while "idiosyncratic" standards have ambiguous effects on exports.

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