TY  - GEN
N2  - We provide evidence on the value of patents to startups by leveraging the quasi-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.
AB  - We provide evidence on the value of patents to startups by leveraging the quasi-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.
T1  - What Is a Patent Worth? Evidence from the U.S. Patent 'Lottery'
AU  - Farre-Mensa, Joan
AU  - Hegde, Deepak
AU  - Ljungqvist, Alexander
LA  - eng
ID  - 42094
KW  - Patents
KW  - R&D
KW  - Research and development
KW  - Entrepreneurship
KW  - Venture capital
TI  - What Is a Patent Worth? Evidence from the U.S. Patent 'Lottery'
LK  - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2704028
UR  - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2704028
ER  -