Does patenting help high-tech start-ups? Articles uri icon

authors

  • HELMERS, CHRISTIAN
  • ROGERS, MARK

publication date

  • September 2011

start page

  • 1016

end page

  • 1027

issue

  • 7

volume

  • 40

international standard serial number (ISSN)

  • 0048-7333

electronic international standard serial number (EISSN)

  • 1873-7625

abstract

  • Using data on all high- and medium-tech start-ups in the UK in 2000, this paper assesses the effect associated with a firm's decision to patent on a firm's subsequent growth between 2001 and 2005. We propose a new approach to addressing well known issues challenging identification of any patent effect: firm heterogeneity, simultaneity between firm performance and patenting, and sample selection. Our findings suggest that patentees have higher asset growth than non-patentees of between 8% and 27% per annum.