Author Abstract
Using patents as indicators of inventive activity, this article characterizes the concentration of origins of invention from 1976 to 2010 and how these have changed over time. The analysis finds pervasive deconcentration in virtually every area related to ICT, but it can explain only a small part of this trend. Deconcentration happens despite the role of lateral entry by existing firms. New firm entry drives part of the deconcentration, but this alone cannot explain the change. A single supply factor in the market for ideas, such as the breakup of AT&T, cannot explain the trend, either. Finally, 11% of patents change hands through mergers and acquisitions activity, but this does not make up for the declines in concentration in the origins of invention.
Paper Information
- Full Working Paper Text
- Working Paper Publication Date: September 2016
- HBS Working Paper Number: NBER Working Paper Series, No. 22631
- Faculty Unit(s): Technology and Operations Management