The Role of Patents for VC Financing

17 Pages Posted: 4 Mar 2009

See all articles by Carolin Häussler

Carolin Häussler

University of Passau

Dietmar Harhoff

Max Planck Institute for Innovation and Competition; Ludwig-Maximilians-Universität München; Centre for Economic Policy Research (CEPR)

Elisabeth Mueller

Catholic University of Lille - IESEG School of Management

Abstract

This paper investigates how patents held by new ventures affect their ability to attract venture capital (VC) financing. For a sample of VC-seeking German and British biotechnology companies we have identified all patents filed at the European Patent Office. We find that in the presence of patent applications, VC financing occurs earlier. Our results suggest that VCs pay attention to anticipated patent quality and finance ventures with high quality patents faster. Revealed quality has a mixed effect. Whereas we find patent oppositions to increase the likelihood of receiving VC, we do not find that the ultimate grant decision spurs VC financing.

Keywords: Entrepreneurship

JEL Classification: M13

Suggested Citation

Haeussler, Carolin and Harhoff, Dietmar and Mueller, Elisabeth, The Role of Patents for VC Financing. Babson College, Babson College Entrepreneurship Research Conference (BCERC) 2008, Frontiers of Entrepreneurship Research, 2008, Available at SSRN: https://ssrn.com/abstract=1348215

Carolin Haeussler (Contact Author)

University of Passau ( email )

Innstrasse 27
Passau, 94032
Germany

Dietmar Harhoff

Max Planck Institute for Innovation and Competition ( email )

Marstallplatz 1
Munich, Bayern 80539
Germany
+49 89 24246 550 (Phone)
+49 89 24246 599 (Fax)

HOME PAGE: http://www.ip.mpg.de

Ludwig-Maximilians-Universität München ( email )

Munich, 80539
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Elisabeth Mueller

Catholic University of Lille - IESEG School of Management ( email )

Socle de la Grande Arche
1 Parvis de la Defense
Puteaux, Paris 92800
France

HOME PAGE: http://https://www.ieseg.fr/enseignement-et-recherche/enseignant/?id=303434

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