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Patent text similarity and cross-cultural venture-backed innovation

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  • Trevor Rogers, F.

Abstract

Portfolio companies with cross-cultural venture-backing that produce patents which are textually more similar to industry peers also produce more patents and higher quality patents. 4.9 million cosine similarity measures between the patents of 958 venture-backed portfolio companies from 28 different nations provide results that are able to generalize beyond the English language with the addition of a cultural-linguistic distance measure. Latent Dirichlet allocation topic modeling applied to the patent text validates these categories, making these results robust against deviation between industries. The results provide a textual measure that venture capital firms from all nations can use to determine if the patents produced by their portfolio companies are the type that encourage greater innovation.

Suggested Citation

  • Trevor Rogers, F., 2020. "Patent text similarity and cross-cultural venture-backed innovation," Journal of Behavioral and Experimental Finance, Elsevier, vol. 26(C).
    • Handle: RePEc:eee:beexfi:v:26:y:2020:i:c:s2214635019302059
    DOI: 10.1016/j.jbef.2020.100319
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    References listed on IDEAS

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    Cited by:

    1. Ascione, Grazia Sveva, 2023. "Technological diversity to address complex challenges: the contribution of American universities to sdgs," MPRA Paper 119452, University Library of Munich, Germany.

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    More about this item

    Keywords

    Venture capital; Corporate innovation; Patents;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G40 - Financial Economics - - Behavioral Finance - - - General

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