Patents, Entrepreneurship and Performance
AbstractThis paper provides an overview of a new database that uses intellectual property data to track the innovative activity of firms in the UK. The paper looks at the extent and nature of patenting activity, focusing on micro firms and SMEs. Over the period 2000 to 2007, SME patenting has increased whereas large firm patenting has fallen and micro firm patenting has been roughly con- stant. Most micro and SMEs patent while relatively young (aged ten or less) and this tendency is becoming more pronounced over time. The paper provides a descriptive analysis on micro firms and SMEs that become high growth firms (defined as having greater than 20 percent growth per annum). Overall, 28.0 percent of young micro and SMEs achieve high growth (over 2002 to 2007). In comparison, 29.4 percent of young micro or SMEs that patent achieve high growth. This difference is much greater for firms in the high-tech industries. Moreover, the analysis shows that due to the skewed nature of the firm-level growth distribution, standard conditional mean estimators may fail to uncover important differences in the association between patenting and firm growth across the conditional growth distribution.
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Bibliographic InfoPaper provided by Institute of Economic Research, Hitotsubashi University in its series Global COE Hi-Stat Discussion Paper Series with number gd09-095.
Date of creation: Dec 2009
Date of revision:
Firm growth; patents;
Find related papers by JEL classification:
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-01-16 (All new papers)
- NEP-CSE-2010-01-16 (Economics of Strategic Management)
- NEP-EFF-2010-01-16 (Efficiency & Productivity)
- NEP-ENT-2010-01-16 (Entrepreneurship)
- NEP-INO-2010-01-16 (Innovation)
- NEP-IPR-2010-01-16 (Intellectual Property Rights)
- NEP-SBM-2010-01-16 (Small Business Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Iain M. Cockburn & Stefan Wagner, 2007.
"Patents and the Survival of Internet-related IPOs,"
NBER Working Papers
13146, National Bureau of Economic Research, Inc.
- Kaiser, Ulrich, 2009. "Patents and profit rates," Economics Letters, Elsevier, vol. 104(2), pages 79-80, August.
- Pilar Beneito & María E. Rochina-Barrachina & Amparo Sanchis, 2012. "Patents, competition and firms’ innovation incentives," Working Papers 1211, Department of Applied Economics II, Universidad de Valencia.
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