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Property Rights, Firm Size and Investments in Innovation: Evidence from the America Invents Act

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  • James Driver

Abstract

I analyze whether a change in patent systems differentially affects firm-level innovation investments at patent-valuing firms of different sizes. Using legally required, economically representative, U.S. Census Bureau microdata, I separate firms into groups based on a firm’s response to a question asking it to rank the degree of patent importance to its business and firm-size. I then measure how firms’ innovation inputs/outputs respond to the America Invents Act (AIA). Results show the AIA reduced innovation investments at smaller, patent-valuing firms while increasing innovation investments at larger, patent-valuing firms, highlighting differential firm-size effects of patent policy and policy’s importance to investments.

Suggested Citation

  • James Driver, 2025. "Property Rights, Firm Size and Investments in Innovation: Evidence from the America Invents Act," Working Papers 25-31, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:25-31
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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