Litigation risks and firms innovation dynamics after the IPO

Abstract

An Initial Public Offering (IPO) is a critical event in a firm's life cycle which can reshape its innovation strategy. Research suggests that after going public firms experience an increase in patent productivity. Our paper explores perceived litigation risks as a determinant of this outcome by examining US semiconductor firms. Results show that perceived patent litigation risks are positively associated with patent productivity after the IPO. Interestingly, we also find that the amount of capital raised during the IPO is positively associated with patent productivity after the IPO, successfully replicating previous findings on this relationship.These results are robust to model specifications where we attempt to account for the dynamics of self-selection of firms into IPO by considering matched control firms with similar pre-IPO characteristics, but that never went public.

Recommending blue ocean technologies for subcontractors: A framework based on business reports of prime contractors and patents

“…In this section, we apply the aforementioned methodology to an actual case of a semiconductor industry. This industry is known as an intellectual property intensive, heavily relying on R&D with rapid technological changes and overall increase in patenting [ 54 , 55 ]. We choose SK Hynix Inc., the world’s third-largest company in terms of revenue among all semiconductor vendors in 2018 [ 56 ], as the prime contractor, and some of its subcontractors.…”