Trade and the impact of innovations and standards: the case of Germany and the UK

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.