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SUMMARY:MTEI Seminar by Prof. Arvidis Ziedonis\, University of Oregon
DTSTART:20130625T120000
DTEND:20130625T133000
DTSTAMP:20260429T130209Z
UID:4adb255c886af66c639097e05fba410daadacaa57c49e97ae566cf91
CATEGORIES:Conferences - Seminars
DESCRIPTION:Prof. Arvidis Ziedonis\, University of Oregon\n"The Private Va
 lue of Patents for Entrepreneurial Ventures: Evidence from Medical Devices
 \, Semiconductors\, and Software"Abstract\nInspired by the seminal Teece (
 1986) framework\, numerous innovation scholars have assessed whether paten
 t protection enables companies to reap greater profits from innovation (Ch
 esbrough et al. 2006). Causal linkages between patents and firm value none
 theless remain ambiguous in entrepreneurial-firm environments. Relative to
  their established counterparts\, startups typically face tighter liquidit
 y constraints in patent enforcement\, which can diminish the economic and 
 strategic value of their rights (Lanjouw and Schankerman 2001\, Katila et 
 al. 2008). Yet the profit-potential of technology startups is intimately t
 ied to discoveries and know-how that patents aim to protect (Arora et al. 
 2001).\nThis study provides preliminary evidence on the private value of p
 atents for 3\,414 venture-backed U.S. companies founded between 1987 and 1
 999. We compare the magnitude of such value across three industrial sector
 s:  medical devices\, semiconductor devices\, and computer software. Thes
 e sectors provide useful contrasts and commonalities that illuminate linka
 ges more difficult to discern in single-industry studies. Of particular im
 portance\, the U.S. legal regime governing the patentability of software-r
 elated inventions changed dramatically in the 1990s (Lerner and Zhu 2007\,
  Hall and MacGarvie 2010)\, a time frame captured by our analysis. We use 
 this technology-specific “regime shift” to test for changes in the pri
 vate value of patents to entrepreneurial ventures\, both within software a
 nd relative to the other two sectors.\nOur preliminary evidence suggests t
 hat the private value of patents to entrepreneurial software companies cli
 mbed significantly in the wake of the 1990s legal rulings. (In contrast\, 
 Hall and MacGarvie (2010) report a far more tepid effect on publicly trade
 d companies.) We interpret this evidence as consistent with the view that 
 patents serve an economically meaningful role for software startups\, a ma
 tter of hot contestation in both the academic and public policy communitie
 s.\nDespite this disproportionate rise in the private value of patents in 
 software\, we further document that—following regime-shifts in the mid-1
 990s—the magnitude with which patents boost NPV estimates in software re
 mains an order of magnitude lower than that in the other two sectors. Cons
 istent with Graham et al. (2010)\, this evidence likely reflects the natur
 al limitations of patents as legal safeguards for software products relati
 ve to “hardware” like semiconductors and medical devices.\nFinally\, o
 ur findings challenge conventional wisdom that patent value is demarcated 
 by broad industry categories—at least within entrepreneurial-firm enviro
 nments. Based on evidence from VC-backed startups\, we find that the profi
 ts attributable to patents are comparable and substantial in the two devic
 e-related sectors\, even though one (medical devices) is in the Life Scien
 ce industry and the other (semiconductor devices) is in IT. In contrast\, 
 we find statistically significant and enduring differences in the profit-p
 otential of patents for startups in software and semiconductors\, the two 
 IT-related sectors. This empirical evidence has important implications for
  future research testing the effects of patent protection on entrepreneuri
 al activity.
LOCATION:EPFL\, ODY 4.03\, VIP room http://plan.epfl.ch/?zoom=20&recenter_
 y=5863800.12869&recenter_x=731560.22521&layerNodes=fonds\,batiments\,label
 s\,events_surface\,events_line\,events_label\,information\,parkings_public
 s\,arrets_metro\,evenem
STATUS:CONFIRMED
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