A Comment on 'Do Patents Facilitate Financing in the Software Industry?'
9 Pages Posted: 28 Jun 2006
Date Written: June 27, 2006
'Do Patents Facilitate Financing in the Software Industry?' by Ronald J. Mann contributes empirical evidence to our understanding of how software startups use patents. However, a close examination of the actual empirical findings in this paper points to rather different conclusions than those that Mann draws, namely: few software startups benefit from software patents and patents are not widely used by software firms to obtain venture financing. Indeed, among other things, the paper reports that 80% of venture-financed software startups had no acquired any patents within four years of receiving financing.
Keywords: Software, Patents, Startups, Innovation, Venture Capital
JEL Classification: 034, M13, L86
Suggested Citation: Suggested Citation