Winner of the Industry & Innovation DRUID Award for Best Paper 2018

DRUID18, Copenhagen, June 11-13, 2018

The award is biannual and given to the most innovative and high-quality paper published by Industry and Innovation in the previous two years. The award consists of 1000 EUR (sponsored by Taylor and Francis) plus free access to the DRUID June conference for one author (sponsored by DRUID).

Trademark or patent? The effects of market concentration, customer type and venture capital financing on start-ups’ initial IP applications

Industry and Innovation, 24:4 (2017), 325-345.

Geertjan De Vries
Enrico Pennings
Joern H. Block
Christian Fisch

Christoph Grimpe, Christian Fisch, Mark Lorenzen

ABSTRACT: We analyse the initial IP applications of 4,703 start-ups in the U.S., distinguishing between trademark and patent applications. Our empirical results show that start-ups are more likely to file for trademarks instead of patents when entering markets with a higher market concentration. Furthermore, we find that start-ups that are primarily active in business-to-consumer markets instead of business-to-business markets are more likely to file trademarks. Finally, the involvement of a venture capitalist (VC) affects the initial IP application. VC-backed start-ups are more likely than other startups to file initial IP in the form of trademarks rather than patents. This paper contributes to research on the use of IP rights in start-ups and to the literature on new venture strategy.