Patents, Innovation, and Market Entry
September 2023
Working Paper Number:
CES-23-45
Abstract
Do patents facilitate market entry and job creation? Using a 2014 Supreme Court decision that limited patent eligibility and natural language processing methods to identify invalid patents, I find that large treated firms reduce job creation and create fewer new establishments in response, with no effect on new firm entry. Moreover, companies shift toward innovation aimed at improving existing products consistent with the view that patents incentivize creative destruction.
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market,
manufacturing,
company,
disclosure,
study,
technology,
invention,
research,
venture,
innovation,
innovator,
inventory,
patent,
innovate,
patenting,
firms patents,
patented,
patents firms,
patenting firms
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Company Organization Survey,
Supreme Court,
Longitudinal Business Database,
Postal Service,
North American Industry Classification System,
Patent and Trademark Office,
Business Register,
Census Bureau Disclosure Review Board,
Disclosure Review Board,
Federal Statistical Research Data Center
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