Quick or Broad Patents? Evidence from U.S. Startups

79 Pages Posted: 14 Jul 2021

See all articles by Deepak Hegde

Deepak Hegde

New York University (NYU) - New York University

Alexander Ljungqvist

Centre for Economic Policy Research (CEPR); Stockholm School of Economics; European Corporate Governance Institute (ECGI); Research Institute of Industrial Economics (IFN)

Manav Raj

New York University (NYU) - Leonard N. Stern School of Business

Date Written: July 2021

Abstract

We study the effects of patent scope and review times on startups and externalities on their rivals. We leverage the quasi-random assignment of U.S. patent applications to examiners and find that grant delays reduce a startup's employment and sales growth, chances of survival, access to external capital, and future innovation. Delays also harm the growth, access to external capital, and follow-on innovation of the patentee's rivals, suggesting that quick patents enhance both inventor rewards and generate positive externalities. Broader scope increases a startup's future growth (conditional on survival) and innovation but imposes negative externalities on its rivals' growth.

JEL Classification: D23, G24, L26, O34

Suggested Citation

Hegde, Deepak and Ljungqvist, Alexander and Ljungqvist, Alexander and Raj, Manav, Quick or Broad Patents? Evidence from U.S. Startups (July 2021). Available at SSRN: https://ssrn.com/abstract=3886806

Deepak Hegde (Contact Author)

New York University (NYU) - New York University

Alexander Ljungqvist

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Stockholm School of Economics ( email )

111 60 Stockholm
Sweden

European Corporate Governance Institute (ECGI)

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Manav Raj

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 West 4th Street
Suite 9-160
New York, NY NY 10012
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
140
PlumX Metrics