The effect of patent litigation and patent assertion entities on entrepreneurial activity
This paper empirically investigates the statistical relationship between levels of patent litigation and venture capital investment in the U.S. We find that VC investment, a major funding source for entrepreneurial activity, initially increases with the number of litigated patents. However, there is...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Article |
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Elsevier BV
2019
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| Online Access: | http://hdl.handle.net/1721.1/120600 https://orcid.org/0000-0002-1847-4832 |
| _version_ | 1811068237218054144 |
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| author | Kiebzak, Stephen Rafert, Greg Tucker, Catherine Elizabeth |
| author2 | Sloan School of Management |
| author_facet | Sloan School of Management Kiebzak, Stephen Rafert, Greg Tucker, Catherine Elizabeth |
| author_sort | Kiebzak, Stephen |
| collection | MIT |
| description | This paper empirically investigates the statistical relationship between levels of patent litigation and venture capital investment in the U.S. We find that VC investment, a major funding source for entrepreneurial activity, initially increases with the number of litigated patents. However, there is a “tipping point” where further increases in the number of patents litigated are associated with decreased VC investment, which suggests an inverted U-shaped relation between patent litigation and VC investment. This appears strongest for technology patents, and negligible for products such as pharmaceuticals. Strikingly, we find evidence that litigation by frequent patent litigators, a proxy for litigation by patent assertion entities, is directly associated with decreased VC investment, with no positive effects initially. |
| first_indexed | 2024-09-23T07:53:23Z |
| format | Article |
| id | mit-1721.1/120600 |
| institution | Massachusetts Institute of Technology |
| last_indexed | 2024-09-23T07:53:23Z |
| publishDate | 2019 |
| publisher | Elsevier BV |
| record_format | dspace |
| spelling | mit-1721.1/1206002022-09-23T09:26:47Z The effect of patent litigation and patent assertion entities on entrepreneurial activity Kiebzak, Stephen Rafert, Greg Tucker, Catherine Elizabeth Sloan School of Management Tucker, Catherine Elizabeth This paper empirically investigates the statistical relationship between levels of patent litigation and venture capital investment in the U.S. We find that VC investment, a major funding source for entrepreneurial activity, initially increases with the number of litigated patents. However, there is a “tipping point” where further increases in the number of patents litigated are associated with decreased VC investment, which suggests an inverted U-shaped relation between patent litigation and VC investment. This appears strongest for technology patents, and negligible for products such as pharmaceuticals. Strikingly, we find evidence that litigation by frequent patent litigators, a proxy for litigation by patent assertion entities, is directly associated with decreased VC investment, with no positive effects initially. 2019-03-01T19:16:46Z 2019-03-01T19:16:46Z 2015-10 2015-06 2019-02-11T18:18:43Z Article http://purl.org/eprint/type/JournalArticle 0048-7333 http://hdl.handle.net/1721.1/120600 Kiebzak, Stephen et al. “The Effect of Patent Litigation and Patent Assertion Entities on Entrepreneurial Activity.” Research Policy 45, 1 (February 2016): 218–231 © 2015 Elsevier B.V. https://orcid.org/0000-0002-1847-4832 http://dx.doi.org/10.1016/J.RESPOL.2015.07.002 Research Policy Creative Commons Attribution-NonCommercial-NoDerivs License http://creativecommons.org/licenses/by-nc-nd/4.0/ application/pdf Elsevier BV Other repository |
| spellingShingle | Kiebzak, Stephen Rafert, Greg Tucker, Catherine Elizabeth The effect of patent litigation and patent assertion entities on entrepreneurial activity |
| title | The effect of patent litigation and patent assertion entities on entrepreneurial activity |
| title_full | The effect of patent litigation and patent assertion entities on entrepreneurial activity |
| title_fullStr | The effect of patent litigation and patent assertion entities on entrepreneurial activity |
| title_full_unstemmed | The effect of patent litigation and patent assertion entities on entrepreneurial activity |
| title_short | The effect of patent litigation and patent assertion entities on entrepreneurial activity |
| title_sort | effect of patent litigation and patent assertion entities on entrepreneurial activity |
| url | http://hdl.handle.net/1721.1/120600 https://orcid.org/0000-0002-1847-4832 |
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