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Individual Inventors and Market Potentials: Evidence from US Patents

Agiakloglou, Christos and Drivas, Kyriakos and Karamanis, Dimitris (2014): Individual Inventors and Market Potentials: Evidence from US Patents.

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Abstract

This paper examines the commercialization propensities of individual inventors' patents. Exploiting a peculiarity of the US patent system, concerning patent renewal fees in order to obtain small or large entity status, we are able to distinguish patents that become part of a large corporation's patent portfolio. Using an extensive dataset of US patents, both for domestic and foreign individual inventors, we find that patent characteristics, size of research teams, prior experience and past corporate patenting activity are positively associated with increased likelihood of transferring patent rights to large corporations.

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