Business Dynamics of Innovating Firms: Linking U.S. Patents with Administrative Data on Workers and Firms

67 Pages Posted: 30 Jul 2015 Last revised: 29 Oct 2015

See all articles by Stuart J.H. Graham

Stuart J.H. Graham

Georgia Institute of Technology - Scheller College of Business

Cheryl Grim

U.S. Census Bureau - Center for Economic Studies

Tariqul Islam

RTI International, Environmental and Health Sciences

Alan C. Marco

Georgia Institute of Technology - School of Public Policy

Javier Miranda

US Census Bureau — Economy-Wide Statistics Division

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Date Written: July 1, 2015

Abstract

This paper discusses the construction of a new longitudinal database tracking inventors and patent-owning firms over time. We match granted patents between 2000 and 2011 to administrative databases of firms and workers housed at the U.S. Census Bureau. We use inventor information in addition to the patent assignee firm name to and improve on previous efforts linking patents to firms. The triangulated database allows us to maximize match rates and provide validation for a large fraction of matches. In this paper, we describe the construction of the database and explore basic features of the data. We find patenting firms, particularly young patenting firms, disproportionally contribute jobs to the U.S. economy. We find patenting is a relatively rare event among small firms but that most patenting firms are nevertheless small, and that patenting is not as rare an event for the youngest firms compared to the oldest firms. While manufacturing firms are more likely to patent than firms in other sectors, we find most patenting firms are in the services and wholesale sectors. These new data are a product of collaboration within the U.S. Department of Commerce, between the U.S. Census Bureau and the U.S. Patent and Trademark Office.

Suggested Citation

Graham, Stuart J.H. and Grim, Cheryl and Islam, Tariqul and Marco, Alan C. and Miranda, Javier, Business Dynamics of Innovating Firms: Linking U.S. Patents with Administrative Data on Workers and Firms (July 1, 2015). USPTO Economics Working Paper No. 2015-3; US Census Bureau Center for Economic Studies Paper No. CES-WP-15-19. Available at SSRN: https://ssrn.com/abstract=2637602 or http://dx.doi.org/10.2139/ssrn.2637602

Stuart J.H. Graham (Contact Author)

Georgia Institute of Technology - Scheller College of Business ( email )

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HOME PAGE: http://https://www.scheller.gatech.edu/graham

Cheryl Grim

U.S. Census Bureau - Center for Economic Studies ( email )

Suitland Federal Center
Washington, DC 20233
United States

Tariqul Islam

RTI International, Environmental and Health Sciences ( email )

6110 Executive Blvd #902
Rockville, MD 20852
United States

Alan C. Marco

Georgia Institute of Technology - School of Public Policy ( email )

685 Cherry St.
Atlanta, GA 30332-0345
United States

Javier Miranda

US Census Bureau — Economy-Wide Statistics Division ( email )

Washington, DC
United States

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