How patent litigations affect entrepreneurial venture financing?


讲座时间:2020年7月15日   10:00- 11:30am



                 会议 ID:225 758 735



Patent litigations have been one of the vital factors affecting firms in technology industries. Recent years have witnessed a surge of patent litigations often involving entrepreneurial firms. While most extant research focuses on the impact of patent litigations on firm innovation, much less is known about how litigations affect venture financing, which is one of the most central issues for entrepreneurial firms. This paper examines how patent litigations affect entrepreneurial firms’ venture capital (VC) financing. Using a dataset linking patent litigations to VC-backed firms and exploiting the variation in courts’ friendliness to litigants among different regions, we find that litigations reduce an entrepreneurial firm’s probability of receiving VC investment as well as the amount of investment received. In addition, we find that the negative impacts are more prominent for firms that lack other quality signals.


Mingtao Xu is an incoming Assistant Professor in the Department of Management at Louisiana State University. He obtained his PhD in Strategy from Purdue University Krannert School of Management. His interests are in technological innovation, strategic management, and entrepreneurship. His research explores firms’ acquisition and monetization of patents, how the institutional and legal uncertainties surrounding property rights affect firms, and how the adoption of AI affects organizational learning. His research has won Academy of Management STR Division’s Distinguished Student Paper Award. Mingtao previously studied at Emory University, Georgia Tech, and UIBE.