Bankrupt Innovative Firms

• 成果类型: Article
• 署名作者: Ma, Song; Tong, Joy Tianjiao; Wang, Wei
• 署名单位: Yale University; National Bureau of Economic Research; Western University (University of Western Ontario); Queens University - Canada
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2021.4141
• 发表日期: 2022
• 页码: 6971-6992
• 关键词: innovation; patent collateral; bankruptcy; SECURED DEBT; Creditor rights

摘要

We study how innovative firms manage their innovation portfolios after filing for Chapter 11 reorganization using three decades of data. We find that they sell off core (i.e., technologically critical and valuable), rather than peripheral, patents in bankruptcy. The selling pattern is driven almost entirely by firms with greater use of secured debt, and the mechanism is secured creditors exercising their control rights on collateralized patents. Creditor-driven patent sales in bankruptcy have implications for technology diffusion the sold patents diffuse more slowly under new ownership and are more likely to be purchased by patent trolls.