How effective are patents really?

Today, an interesting NBER working paper by Deepak Hegde from NYU Stern and coauthors got published:

We provide evidence on the value of patents to startups by leveraging the random assignment of applications to examiners with different propensities to grant patents. Using unique data on all first-time applications filed at the U.S. Patent Office since 2001, we find that startups that win the patent “lottery” by drawing lenient examiners have, on average, 55% higher employment growth and 80% higher sales growth five years later. Patent winners also pursue more, and higher quality, follow-on innovation. Winning a first patent boosts a startup’s subsequent growth and innovation by facilitating access to funding from VCs, banks, and public investors.

Continue reading How effective are patents really?

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Recent Trends in German Entrepreneurship

At ZEW (Centre for European Economic Research, Mannheim), we monitor recent trends and figures of entrepreneurship activity in Germany. A new report on the development in 2014 was released some days ago*. Overall, there is a stable decreasing trend in the number of newly founded companies since the mid 1990s which has continued. Continue reading Recent Trends in German Entrepreneurship