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Patents, Innovation, and Market Entry

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  • Dominik Jurek

Abstract

Do patents facilitate market entry and job creation? Using a 2014 Supreme Court decision that limited patent eligibility and natural language processing methods to identify invalid patents, I find that large treated firms reduce job creation and create fewer new establishments in response, with no effect on new firm entry. Moreover, companies shift toward innovation aimed at improving existing products consistent with the view that patents incentivize creative destruction.

Suggested Citation

  • Dominik Jurek, 2023. "Patents, Innovation, and Market Entry," Working Papers 23-45, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:23-45
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    File URL: https://www2.census.gov/library/working-papers/2023/adrm/ces/CES-WP-23-45.pdf
    File Function: First version, 2023
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    More about this item

    Keywords

    intellectual property rights; creative destruction; entry; job creation; Alice decision; natural language processing;
    All these keywords.

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