Litigation risks and firms innovation dynamics after the IPO

Enrico Forti (), Serena Morricone () and Federico Munari ()
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Enrico Forti: University College London
Serena Morricone: SDA Bocconi School of Management
Federico Munari: University of Bologna

Economia e Politica Industriale: Journal of Industrial and Business Economics, 2021, vol. 48, issue 2, No 7, 313 pages

Abstract: Abstract An initial public offering (IPO) is a critical event in a firm’s life cycle which can reshape its innovation strategy. Research suggests that after going public firms experience an increase in patent productivity. Our paper explores perceived litigation risks as a determinant of this outcome by examining US semiconductor firms. Results show that perceived patent litigation risks are positively associated with patent productivity after the IPO. Interestingly, we also find that the amount of capital raised during the IPO is positively associated with patent productivity after the IPO, successfully replicating previous findings on this relationship. These results are robust to model specifications where we attempt to account for the dynamics of self-selection of firms into IPO by considering matched control firms with similar pre-IPO characteristics, but that never went public.

Keywords: Technology ventures; Initial public offering (IPO); Innovation; Patents; Litigation (search for similar items in EconPapers)
JEL-codes: G32 L63 M13 O31 O32 O34 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s40812-020-00161-y

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