Selling Innovation in Bankruptcy∗
نویسندگان
چکیده
We construct a comprehensive dataset of patent sales conducted by all US public firms in Chapter 11 bankruptcy from 1981 to 2012. We document that 40% of firms sell, on average, 18% of their patents during bankruptcy reorganizations. Innovation sales concentrate in the first two quarters after bankruptcy filing. Firms sell more redeployable and liquid patents, as opposed to selling underexploited patents. This pattern is driven by firms that face “fire-sale” pressures and lack access to external financing. Our results are consistent with the view that imminent financing needs in bankruptcy drive innovation sales, and firms proactively avoid market trading frictions in the process. JEL Classification: G33 O34
منابع مشابه
Bankruptcy Codes and Innovation
Bankruptcy Codes and Innovation Do legal institutions governing financial contracts affect the nature of real investments in the economy? We develop a simple model and provide evidence that the answer to this question is yes. We consider a levered firm’s choice of investment between innovative and conservative technologies, on the one hand, and of financing between debt and equity, on the other...
متن کاملWhat Is Open Innovation, Really?
The open innovation paradigm involves the internal and external organization of the innovation process of firms. Proponents and opponents have different views on the actual contribution of this paradigm to the research community. We argue that given the prior literature on the subject, the main conceptual contribution of the open innovation paradigm is the claim that firms with a successful inn...
متن کاملInnovation in Online Selling Business Models: A Structural Equation Modeling-Based Multigroup Analysis
This paper examines the impact of net-enablement capability on the innovation in business model for online selling utilizing the Net-enabled Business Innovation Cycle (NEBIC) theoretical framework. Based on a sample of 296 online sellers across different Canadian sectors, the paper empirically tests for the invariant in the relationship between net-enablement capability and the innovation in on...
متن کاملبهبود مستمر با نوآوری تأثیر روش ترکیبی بهبود مستمر و نوآوری در توسعه سازمانهای ایرانی
Top managers of organizations should always spend most of their time to improve their organizations while devolving the routine and day-to-day maintenance affairs to lower levels. Is it commonly practiced in the same manner in our organizations? The manager who wastes his time by issuing written orders about the jobs which otherwise could have been delegated to subordinate experts would lack en...
متن کاملA Suitable Innovation Type to Improve the Added Value in Entrepreneurship
Due to the tough on-going competition between producers of commodities and services, the prices of products are continuously going down nowadays. To avoid bankruptcy in such circumstances, organizations have focused on the application of technological innovations that enable them to respond to the needs of their clients. It is to this end that they attempt to gain the market and increase their ...
متن کامل