Property Rights, Firm Size and Investments in Innovation: Evidence from the America Invents Act
May 2025
Working Paper Number:
CES-25-31
Abstract
I analyze whether a change in patent systems differentially affects firm-level innovation investments at patent-valuing firms of different sizes. Using legally required, economically representative, U.S. Census Bureau microdata, I separate firms into groups based on a firm's response to a question asking it to rank the degree of patent importance to its business and firm-size. I then measure how firms' innovation inputs/outputs respond to the America Invents Act (AIA). Results show the AIA reduced innovation investments at smaller, patent-valuing firms while increasing innovation investments at larger, patent-valuing firms, highlighting differential firm-size effects of patent policy and policy's importance to investments.
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investment,
growth,
technological,
invention,
corporation,
investing,
venture,
investor,
innovation,
inventory,
patent,
economically,
patenting,
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National Science Foundation,
Longitudinal Business Database,
Initial Public Offering,
North American Industry Classification System,
Patent and Trademark Office,
Census Bureau Business Register,
Census Bureau Disclosure Review Board,
Business Research and Development and Innovation Survey,
Federal Statistical Research Data Center
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