When Do Start-ups Patent Their Inventions? Evidence from a Broad Approach

Barrales-Molina Vanesa (), Riquelme-Medina Marta () and Llorens-Montes Francisco Javier ()
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Barrales-Molina Vanesa: University of Granada, Granada, Spain
Riquelme-Medina Marta: University of Granada, Granada, Spain
Llorens-Montes Francisco Javier: University of Granada, Granada, Spain

Entrepreneurship Research Journal, 2021, vol. 11, issue 4, 17

Abstract: Patents are no longer merely protective; other factors are becoming prominent in explaining when start-ups patent their inventions. This study uses data from 220 start-ups from different industries to evaluate the role of size, location, collaboration partners and financial means in patenting activity. Our results show a quadratic effect of size on patenting likelihood for start-ups, and patenting level reaches a tipping point for medium-sized start-ups. The findings also show that patenting likelihood is higher, regardless of the industry, when: (i) start-ups are located in international clusters or near other start-ups; (ii) start-ups collaborate with specialized research institutes; and (iii) start-ups are financed through crowdfunding campaigns. Location in co-working spaces seems, however, to be associated with lower patenting likelihood. These results help to illustrate the context in which start-ups value patents as protection instruments vs. as strategic resources to achieve other goals, such as reputation, or access to networks or financial capital. Analysing the reasons why start-ups patent is crucial due to the growing relevance these companies gain when they introduce innovations in the current economy.

Keywords: Start-ups; patents; location; collaboration; financing (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1515/erj-2018-0227

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