How does firm size moderate firms' ability to benefit from invention? Evidence from patents and scientific publications

Journal Article (Journal Article)

Using novel firm-level panel data, this paper investigates how firms' ability to benefit from invention is moderated by firm size. We distinguish between output indicators of applied research using patents versus output indicators of basic research using scientific publications in "hard science" journals. Our results show that the relationship between performance and patents is stronger for small firms than for large firms. By contrast, the relationship between performance and scientific publications is stronger for large firms than for small firms. We also investigate several mechanisms that may be responsible for these firm size effects. Cost-spreading, complementary assets and especially large firm's inertia all appear to exert a significant influence on the appropriability of patented research. Conversely, a key role of published research seems to be that of complementing large firms' marketing and sales efforts. © 2014 European Academy of Management.

Full Text

Duke Authors

Cited Authors

  • Belenzon, S; Patacconi, A

Published Date

  • January 1, 2014

Published In

Volume / Issue

  • 11 / 1

Start / End Page

  • 21 - 45

Electronic International Standard Serial Number (EISSN)

  • 1740-4762

International Standard Serial Number (ISSN)

  • 1740-4754

Digital Object Identifier (DOI)

  • 10.1111/emre.12021

Citation Source

  • Scopus