Patents play an important role in facilitating transfers of knowledge, and enable commercialization of innovative ideas by reducing information asymmetry between potential buyers and sellers on the market for technology. The crucial question, however, is how quickly innovative ideas can be...

I study how patents affect firm success (initial public offering or acquisition at a high price) in a sample of 2,191 U.S. startups applying for patent protection in the 24 months following their first round of venture capital funding. I observe both successful and unsuccessful patent...