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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technological,
invention,
corporation,
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innovation,
inventory,
patent,
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patenting,
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Initial Public Offering,
North American Industry Classification System,
Patent and Trademark Office,
Census Bureau Business Register,
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Business Research and Development and Innovation Survey,
Federal Statistical Research Data Center
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