Scandinavian Working Papers in Economics

Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

No 127: A Portrait of the Innovative Firm as a Small Patenting Entrepreneur

Martin Andersson () and Hans Lööf ()
Additional contact information
Martin Andersson: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Hans Lööf: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden

Abstract: This paper examines small innovative entrepreneurs by contrasting patenting firms against non-patenting firms. The empirical analysis is based on new and unique data on internal attributes, location and international trade characteristics for over 20 000 manufacturing firms in Sweden with 1-25 employees. Our main findings are that firms’ access to financial means, human capital and trade with R&D-intensive economies correlate highly significant with their propensity to be engaged in innovation activities, as evidenced by patent applications. Interestingly, when controlling for firm attributes we do not find any significant effect of the local milieu on innovativeness among micro and very small firms.

Keywords: Entrepreneurship; Innovation and Invention; Intellectual Property Rights; SMEs; Technology Transfer; Location; Agglomeration

JEL-codes: F43; L26; M13; O31; O34

29 pages, April 9, 2008

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