Early Patent Disclosure and R&D Investment in Family Firms

This paper shows that the American Inventor’s Protection Act, which introduced the disclosure of patent applications after 18 months, i.e. before a grant decision is taken and, hence, before it is known whether the respective technology receives legal protection, is associated with a reduction of family firms’ research and development (R&D) investment. This suggests that early disclosure of patent applications is perceived as a threat to family firms’ innovation activity and discourages their R&D investment. This finding deserves our attention because family firms account for a large share of the U.S. economy and a reduction of their R&D investment can have long-term consequences.

Hussinger, Katrin und Wunnam Issah (2023), Early Patent Disclosure and R&D Investment in Family Firms, ZEW Discussion Paper Nr. 23-044, Mannheim.