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(No) Patent, No Cash? A Risk Perception Perspective On Investment Managers’ Attitudes Towards Patents

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  • M. KNOCKAERT
  • A. HUYGHE
  • B. CLARYSSE

Abstract

Employing a risk perception perspective, this paper studies the link between the investment manager’s human capital and his or her attitude towards the appropriability regime in the business proposal, and more specifically whether or not the technology is patent protected. Even though many researchers acknowledge the benefits related to patenting, agency theory suggests that patents may enlarge agency risk and may therefore result in VCs refraining from investing in proposals commercializing patented technology. We find that task-specific human capital, operationalized as the number of years experience as investment manager, positively affects the attitude towards patents. We find that some elements of general human capital, namely consulting experience, financial experience and entrepreneurial experience affect the attitude towards patents.

Suggested Citation

  • M. Knockaert & A. Huyghe & B. Clarysse, 2011. "(No) Patent, No Cash? A Risk Perception Perspective On Investment Managers’ Attitudes Towards Patents," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 11/703, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:11/703
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    1. de Bettignies, Jean-Etienne & Brander, James A., 2007. "Financing entrepreneurship: Bank finance versus venture capital," Journal of Business Venturing, Elsevier, vol. 22(6), pages 808-832, November.
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    Keywords

    venture capital; selection behaviour; appropriability; human capital; risk perception;
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