| Abstract: |
I analyze whether a change in patent systems differentially affects firm-level
innovation investments at patent-valuing firms of different sizes. Using
legally required, economically representative, U.S. Census Bureau microdata, I
separate firms into groups based on a firm’s response to a question asking it
to rank the degree of patent importance to its business and firm-size. I then
measure how firms’ innovation inputs/outputs respond to the America Invents
Act (AIA). Results show the AIA reduced innovation investments at smaller,
patent-valuing firms while increasing innovation investments at larger,
patent-valuing firms, highlighting differential firm-size effects of patent
policy and policy’s importance to investments. |