When Do Start-ups Patent Their Inventions? Evidence from a Broad Approach

Patents are no longer merely protective; other factors are becoming prominent in explaining when start-ups patent their inventions. This study uses data from 220 start-ups from different industries to evaluate the role of size, location, collaboration partners and financial means in patenting activity. Our results show a quadratic effect of size on patenting likelihood for start-ups, and patenting level reaches a tipping point for mediumsized start-ups. The findings also show that patenting likelihood is higher, regardless of the industry, when: (i) start-ups are located in international clusters or near other start-ups; (ii) start-ups collaborate with specialized research institutes; and (iii) start-ups are financed through crowdfunding campaigns. Location in co-working spaces seems, however, to be associated with lower patenting likelihood. These results help to illustrate the context in which start-ups value patents as protection instruments vs. as strategic resources to achieve other goals, such as reputation, or access to networks or financial capital. Analysing the reasons why start-ups patent is crucial due to the growing relevance these companies gain when they introduce innovations in the current economy.