讲座：How Does Patent Litigation Affect Entrepreneurial Venture Financing?
题 目：How Does Patent Litigation Affect Entrepreneurial Venture Financing?
嘉 宾：Mingtao Xu, Assistant Professor, Louisiana State University
主持人：谢露群 助理教授 上海交通大学安泰经济与管理学院
地 点：ZOOM 会议
Studies in strategy and entrepreneurship have examined how entrepreneurial firms build their resources to obtain competitive advantage. However, few have investigated the situation where their resources are at risk; one of such situations is patent litigations. Recent years have witnessed a surge of patent litigations that often involve entrepreneurial firms. While extant research primarily examines how patent litigations affect startups’ development of technological capabilities, much neglected is how litigations may affect their external financing, one of the most crucial issues for startups. This paper fills in the gap in the literature by studying how being sued for patent infringement affects startups’ venture capital (VC) financing. Using a carefully constructed matched sample linking patent litigations to VC-backed firms and exploiting variations in practices among district courts, we find that litigations reduce an entrepreneurial firm’s probability of receiving VC investment as well as the amount of investment received. Besides, we find that the negative impacts are less prominent when the startup has more quality signals, and when the cost of litigations is less uncertain.
Mingtao Xu is an incoming Assistant Professor in the Department of Management at Louisiana State University. He obtained his PhD in Strategy from Purdue University Krannert School of Management. His interests are in technological innovation, strategic management, and entrepreneurship. His research explores how the institutional and legal uncertainties surrounding property rights affect firms, firms’ monetization of patents, and AI and organizational learning. His research has won Academy of Management STR Division’s Distinguished Student Paper Award. Mingtao previously studied at Emory University, Georgia Tech, and UIBE.