Major US study: inventors invent less in the service of large companies

Inventors who are employed by large companies earn more money, but file fewer patent applications than inventors who work at small companies. This is evident from a large American study.

The University of Chicago and US Census Bureau study, conducted among 760,000 American inventors active between 2000 and 2019, shows that inventors become less productive after an acquisition. On average, they submit 6 to 11 percent fewer patent applications than inventors at smaller companies. The inventors who went to work for a large company earned 12 percent more than those who did not.

The researchers created a model based on the assumption that large companies want to poach inventors and leave their inventions on the shelf to defend their market position. They tested that model with the data of the 760,000 inventors and information about where they work, how many patent applications they filed and how much they earned. A reduction in patent applications and inventions could harm the American economy in the long term. It is therefore necessary to see whether adjustments are needed in political policy, the researchers argue including in The Wall Street Journal.

Although it is a large study, it is still unknown which causes lead to these consequences. For example, according to a Danish scientist who was not involved in the research, it is also possible that some inventors thrive better within a large company, while others prefer a smaller company.