Conferences - Seminars

  Wednesday 2 May 2018 12:00 - 13:30 ODY 4 03

Séminaire par Prof. Salomé Baslandze, Einaudi Institute for Economics and Finance

By Prof. Salomé Baslandze, Einaudi Institute for Economics and Finance

"Patents to Products: Innovation and Firm Performance"

What do standard patent-based innovation measures capture? Using the unique match of firms' patenting activities and their product introduction in the consumer goods sector, we study the relationship between patents and innovation. Our current results indicate that at both the extensive margin and the intensive margin, patents (and citations-adjusted patents) are strongly associated with higher product introduction as well as product destruction and hence larger reallocation at the firm level. We provide additional evidence that this association is at least partly causal. Firms that are patenting also introduce products of higher quality, enjoy larger sales and hold more diverse set of products. We try to disentangle the effect of patents on product versus process innovation – a distinction that has been hard to make from standard data sources. We find that the effect of patenting on product creation is larger for smaller firms, while the process innovation seems more pronounced in larger firms. Lastly, we conduct a textual analysis of product descriptions and patent documents in order to shed more light on the exact transmission of innovation embedded in patents into the creation of specific products.

Organization College of Management of Technology


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