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- Title
Quick or Broad Patents? Evidence from U.S. Startups.
- Authors
Hegde, Deepak; Ljungqvist, Alexander; Raj, Manav
- 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 and innovation. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online
- Subjects
NEW business enterprises; EXTERNALITIES; PATENTS; GRANTS (Money); SALES management; DELAY (Contracts)
- Publication
Review of Financial Studies, 2022, Vol 35, Issue 6, p2705
- ISSN
0893-9454
- Publication type
Article
- DOI
10.1093/rfs/hhab097