Shedding Light on Inventors' Returns to Patents

Depalo, Domenico; Addario, Sabrina Lucia Di

doi:10.2139/ssrn.2572446

Cited by 14 publications

(6 citation statements)

References 35 publications

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“…Toivanen and Vaananen (2012) estimate a varying premium across inventions for a sample of Finnish inventors who patented in the US between 1991 and 1999, although they show the returns to the quality of technological development are particularly high. Depalo and Di Addario (2014) also find that superstar Italian inventors patenting between 1987 and 2006 earned the most.…”

Section: Return To Innovationmentioning

confidence: 68%

The Rise of American Ingenuity: Innovation and Inventors of the Golden Age

Akcigit¹,

Grigsby²,

Nicholas³

2017

114

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We examine the golden age of U.S. innovation by undertaking a major data collection exercise linking historical U.S. patents to state and county-level aggregates and matching inventors to Federal Censuses between 1880 and 1940. We identify a causal relationship between patented inventions and long-run economic growth and outline a basic framework for analyzing key macro and micro-level determinants. We find a positive relationship between innovation and drivers of regional performance including population density, financial development and geographic connectedness. We also explore the impact of social structure measured by slavery and religion. We then profile the characteristics of inventors and their life cycle finding that inventors were highly educated, positively selected through exit early in their careers, made time allocation decisions such as delayed marriage, and tended to migrate to places that were conducive to innovation. Father's income was positively correlated with becoming an inventor, though not when controlling for the child's education. We show there were strong financial returns to technological development. Finally, we document an inverted-U shaped relationship between inequality and innovation but also show that innovative places tended to be more socially mobile. Our new data help to address important questions related to innovation and long-run growth dynamics.

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Section: Return To Innovationmentioning

confidence: 68%

The Rise of American Ingenuity: Innovation and Inventors of the Golden Age

Akcigit¹,

Grigsby²,

Nicholas³

2017

114

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“…In sum, workers with jobs that require advanced technical skills are highly paid (Breau, Kogler, & Bolton, 2014). In addition, innovative regions attract creative and highly skilled workers by offering them competitive wages; however, innovative cites have high inequalities (Depalo & Di Addario 2014;Fan et al, 2006). Liu and Lawell (2015) have found a U-shaped relationship, which means that minor innovations reduce inequality and breakthrough innovations; however, these innovations can increase income inequalities in Chinese provinces.…”

Section: Literature Reviewmentioning

confidence: 99%

Income inequality, innovation and carbon emission: Perspectives on sustainable growth

Mushtaq

Chen

Din

et al. 2020

Economic Research-Ekonomska Istraživanja

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The present study aims to investigate the impact of income inequality and economic growth on carbon dioxide (CO2) emission through the moderating role of innovation in China at national and regional levels. To test the hypothesised relationships, this study took the data from 1995 to 2015 and employed panel estimation. Findings of the whole analysis show that income inequality and economic growth influence CO2 emission in China. Moreover, technological innovation moderates the proposed link. However, the findings at the regional level are mixed, thus confirming the existence of regional differences. Policy implications are also discussed. ARTICLE HISTORY

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“…A handful of previous studies have investigated how inventor wages change in response to patent applications or patent grants (Toivanen and Väänänen 2012;Depalo and Di Addario 2014;Bell et al 2019;Aghion et al 2018). Consistent with these results, we find that the earnings of "inventors" -defined as employees ever listed as inventors on a patent application as in Bell et al (2019) -respond to patent allowance decisions.…”

Section: Introductionmentioning

confidence: 99%

Who Profits from Patents? Rent-Sharing at Innovative Firms*

Kline

Petkova

Williams

et al. 2019

The Quarterly Journal of Economics

261

125

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This article analyzes how patent-induced shocks to labor productivity propagate into worker compensation using a new linkage of U.S. patent applications to U.S. business and worker tax records. We infer the causal effects of patent allowances by comparing firms whose patent applications were initially allowed to those whose patent applications were initially rejected. To identify patents that are ex ante valuable, we extrapolate the excess stock return estimates of Kogan et al. (2017) to the full set of accepted and rejected patent applications based on predetermined firm and patent application characteristics. An initial allowance of an ex ante valuable patent generates substantial increases in firm productivity and worker compensation. By contrast, initial allowances of lower ex ante value patents yield no detectable effects on firm outcomes. Patent allowances lead firms to increase employment, but entry wages and workforce composition are insensitive to patent decisions. On average, workers capture roughly 30 cents of every dollar of patent-induced surplus in higher earnings. This share is roughly twice as high among workers present since the year of application. These earnings effects are concentrated among men and workers in the top half of the earnings distribution and are paired with corresponding improvements in worker retention among these groups. We interpret these earnings responses as reflecting the capture of economic rents by senior workers, who are most costly for innovative firms to replace.

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Shedding Light on Inventors' Returns to Patents

Cited by 14 publications

References 35 publications

The Rise of American Ingenuity: Innovation and Inventors of the Golden Age

The Rise of American Ingenuity: Innovation and Inventors of the Golden Age

Income inequality, innovation and carbon emission: Perspectives on sustainable growth

Who Profits from Patents? Rent-Sharing at Innovative Firms*

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