 Accessibility and materialization of firm innovationNing Jia and Xuan Tian Journal of Corporate Finance, 2018, vol. 48, issue C, 515-541 Abstract: We examine the effect of a firm's accessibility to the United States Patent and Trademark Office (USPTO), captured by the firm's distance to it, on the materialization of the firm's innovation output. An increase in a firm's distance to the USPTO results in a longer time-to-patent-grant and a reduction in the quantity of patents owned. Accessibility is important for a firm's exploratory, but not for exploitative, innovation activity. The relation is more pronounced for first-time patent applicants, firms with a larger degree of information asymmetry, and before the launch of an electronic filing system. Finally, we show that market reacts positively to the opening of USPTO regional offices for innovation-intensive firms that enjoy a shorter distance to the USPTO, and that the contribution of a firm's patent portfolio to its equity value is larger when the firm is located closer to the USPTO. Our study demonstrates one strategy that firms can use to facilitate the materialization of their innovation outcomes, and highlights the importance of accessibility in fostering an effective innovation ecosystem. Keywords: Patenting; USPTO; Accessibility; Distance; Information asymmetry (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:48:y:2018:i:c:p:515-541 DOI: 10.1016/j.jcorpfin.2017.12.002 Access Statistics for this article Journal of Corporate Finance is currently edited by A. Poulsen and J. Netter More articles in Journal of Corporate Finance from Elsevier |
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