Last Updated on Wednesday, 5 March 2014 08:13 Written by dbhalling Wednesday, 5 March 2014 08:13

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This paper has some interesting points, HIGH TECHNOLOGY ENTREPRENEURS AND THE PATENT SYSTEM: RESULTS OF THE 2008  BERKELEY PATENT SURVEY.

We also report that for many startup companies, patents are an important part of the mix of strategies used by them to capture competitive advantage from their technology innovations. But this important role tends to be much more pronounced among biotechnology and “hardware” companies (including both medical hardware such as surgical devices, and IT hardware, such as computers and semiconductors) than among software and Internet startups.

Prior research shows that this small share of firms is disproportionately responsible for innovative output in the economy.

Firms that seek venture-funding appear to be patenting more actively prior to the funding event (and for the purpose of securing funding), and venture-capital investors appear much less willing to fund companies that hold no patents.

 

Here is another study on point Why VCs and Start-ups should Love IP

While having intellectual property increases the probability of success, those who manage intellectual property well have an even higher probability of success. In certain sectors, such as healthcare, data demonstrates the value of higher quality portfolios. In other sectors, such as telecommunications or information technology, the effect is less prominent – although still clearly and demonstrably present.

 

The book The Invisible Edge makes a broader point.

“Without intellectual property protection a business can have no sustainable advantage.”