This study uses patent-level data and documents two important stylized facts. First, Japanese inventors tend to engage much less in Global Collaborative Patents (GCPs) as compared to other comparable countries; and second, even if fewer, GCPs by Japanese inventors tend to be of higher measurable quality, consistent with the evidence.

Having established these facts, the authors then find that Japanese firms dominate the production of patents in Japan, with very little innovative activity by foreign firms, where most of the GCPs typically would occur. Thus, based on this, they offer some thoughts about possible directions using policy to facilitate the integration of Japanese inventors into the global stage by (1) pursuing the establishment of foreign R&D centres in Japan and (2) opening the country’s doors to more immigration.