Abstract
I study whether patent protection has a causal effect on entrepreneurial firm outcomes using a measure of patent examiner leniency as an instrument for getting patents. The analysis is based on sample of 1,950 U.S. startups applying for patent protection in the two years following their first round of venture capital funding. I find a positive and large effect of patents on firm success but only for life science firms and more important inventions. I interpret these results as reflecting the importance of patents in appropriating returns to invention in the life science industry.
| Original language | English |
|---|---|
| Pages (from-to) | 350-376 |
| Number of pages | 27 |
| Journal | Journal of Industrial Economics |
| Volume | 66 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - Jun 2018 |
Bibliographical note
Publisher Copyright:© 2018 The Editorial Board of The Journal of Industrial Economics and John Wiley & Sons Ltd
Structured keywords
- ECON Applied Economics
Keywords
- Acquisition
- Entrepreneurship
- G24
- Initial Public Offering
- L26
- O34
- Patent Examiners
- Patents
- Venture Capital