Patents and the Success of Venture-Capital Backed Startups: Using Examiner Assignment to Estimate Causal Effects

CERGE-EI Working Paper Series No. 546

28 Pages Posted: 30 Jul 2015

Date Written: July 27, 2015

Abstract

I study how patents affect firm success (initial public offering or acquisition at a high price) in a sample of 2,191 U.S. startups applying for patent protection in the 24 months following their first round of venture capital funding. I observe both successful and unsuccessful patent applications and use a measure of patent examiner leniency as an instrument for getting patents. I find a positive effect of patents on firm success for life science firms but not for information technology firms.

Keywords: Patents, Entrepreneurship, Venture Capital, Patent Examiners, Acquisition, Initial Public Offering

JEL Classification: O34, G24, L26

Suggested Citation

Gaule, Patrick, Patents and the Success of Venture-Capital Backed Startups: Using Examiner Assignment to Estimate Causal Effects (July 27, 2015). CERGE-EI Working Paper Series No. 546. Available at SSRN: https://ssrn.com/abstract=2637554 or http://dx.doi.org/10.2139/ssrn.2637554

Patrick Gaule (Contact Author)

CERGE-EI ( email )

P.O. Box 882
7 Politickych veznu
Prague 1, 111 21
Czech Republic

HOME PAGE: http://www.cerge-ei.cz

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