Financial Factors and Patents
(English)Article in journal (Other academic) Submitted
This paper conjectures that equity supply is crucial for firms in order to maintain a smooth patenting profile through time. This hypothesis is tested on Swedish firm-level observations from 1997 to 2005. Patent applications growth in Sweden has been highly volatile in recent years. During the economic downturn, following the burst of the IT-bubble, applications dropped substantially, but results here show that the downturn had little effect on the patenting of high-equity firms. Instead, the entire decline in patent applications is confined to firms with lower levels of equity. This effect is consistent across sectors, firm-size, corporateaffiliation,and human-capital intensity.
Financing constraints, Innovation, Intellectual property rights, Firm-level panel data
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-25248OAI: oai:DiVA.org:kth-25248DiVA: diva2:356747
QS 2011. QS 201203282010-10-132010-10-132012-03-28Bibliographically approved