Aug. 3, 2020

USIJ Report on The Importance of an Effective and Reliable Patent System to Critical Technologies

The Alliance of U.S. Startups and Inventors for Jobs (USIJ) released The Importance of an Effective and Reliable Patent System to Investment in Critical Technologies, a report studying recent trends in venture capital investment in patent-intensive industries. It was authored by Professor Mark Schultz, Goodyear Tire & Rubber Company Endowed Chair in Intellectual Property Law and Director, Intellectual Property and Technology Law Program at the University of Akron.

Analyzing data on U.S. venture capital investment from 2004 to 2017, the report finds that the share of investment going to patent intensive industries has declined significantly. To better understand these trends, Professor Schultz conducted interviews with innovators, investors, and executives who have served in leading institutions such as New Enterprise Associates, Juno Therapeutics, the Cleveland Clinic, and Convelo Therapeutics. These case studies suggest that recent changes to the patent system were a key contributor in investment flowing away from patent-intensive startups in sectors critical to U.S. national security and public safety, such as pharmaceuticals, biotech, and semiconductors.

Read the report here.