Performance of women-owned businesses that patent

This study compares the performance of businesses owned by women (majority or equal ownership) that patent with that of majority men-owned businesses and businesses where gender of ownership cannot be assigned. It finds that women-owned firms have higher survival rates, but lower revenue growth rates, after filing for a patent than businesses where gender of ownership cannot be assigned, even after controlling for observable firm characteristics. The differences between women-owned businesses and businesses where gender of ownership cannot be assigned are greater than those between women-owned and majority men-owned businesses. Women-owned businesses have lower revenue growth rates than majority men-owned businesses, but only have higher survival rates in the fifth year after filing for a patent and after controlling for observable firm characteristics. When the possibility of exit through an acquisition is taken into account, differences in survival between women-owned businesses and other businesses disappear. This suggests that women-owned businesses that patent may have different exit strategies than other businesses. The differences in revenue growth suggest that there may be differences in the quality of the invention, or that some previously documented differences in favour of men-owned businesses (i.e., access to financing and knowledge-building opportunities) may affect the type of inventions developed by women-owned businesses and their ability to successfully commercialize them. Overall, the findings support the need for policies that take gender into account.