Stern School of Business
New York University
40 West Street
New York, NY 10012
Institutional Affiliation: New York University
NBER Working Papers and Publications
|March 2017||What is a Patent Worth? Evidence from the U.S. Patent “Lottery”|
with Joan Farre-Mensa, Alexander Ljungqvist: w23268
We provide evidence on the value of patents to startups by leveraging the quasi-random assignment of applications to examiners with different propensities to grant patents. Using unique data on all first-time applications filed at the U.S. Patent Office since 2001, we find that startups that win the patent “lottery” by drawing lenient examiners have, on average, 55% higher employment growth and 80% higher sales growth five years later. Patent winners also pursue more, and higher quality, follow-on innovation. Winning a first patent boosts a startup’s subsequent growth and innovation by facilitating access to funding from VCs, banks, and public investors.
Published: JOAN FARRE‐MENSA & DEEPAK HEGDE & ALEXANDER LJUNGQVIST, 2020. "What Is a Patent Worth? Evidence from the U.S. Patent “Lottery”," The Journal of Finance, vol 75(2), pages 639-682.
|February 2016||The Bright Side of Patents|
with Joan Farre-Mensa, Alexander Ljungqvist: w21959
Motivated by concerns that the patent system is hindering innovation, particularly for small inventors, this study investigates the bright side of patents. We examine whether patents help startups grow and succeed using detailed micro data on all patent applications filed by startups at the U.S. Patent and Trademark Office (USPTO) since 2001 and approved or rejected before 2014. We leverage the fact that patent applications are assigned quasi-randomly to USPTO examiners and instrument for the probability that an application is approved with individual examiners’ historical approval rates. We find that patent approvals help startups create jobs, grow their sales, innovate, and reward their investors. Exogenous delays in the patent examination process significantly reduce firm growth, job cr...
|June 2007||Pioneers, Submariners, or Thicket-builders: Which Firms Use Continuations in Patenting? |
with David C. Mowery, Stuart Graham: w13153
The continuations procedure within the U.S. patent system has been criticized for enabling firms to manipulate the patent review process for strategic purposes. Changes during the 1990s in patent procedures affected the incentives of applicants to exploit the continuations process, and additional reforms in continuations currently are being considered. Nonetheless, little is known about applicants' use of the three major types of continuations -- the Continuation Application (CAP), the Continuations-In-Part (CIP), and Divisions -- to alter the term and scope of patents. This paper analyzes patents issued from the three types of continuations to U.S. firms during 1981 - 2004 (with priority years 1981 - 2000), and links their frequency to the characteristics of patents, assignees and indu...