Deepak Hegde

Impact of a Startup’s First Patent

Deepak Hegde has provided evidence on the value of patents to startups by leveraging the random assignment of applications to examiners with different propensities to grant patents. Using unique data on all first-time applications filed at the US Patent Office since 2001, he determined that startups that win the patent "lottery" by drawing lenient examiners have, on average, 55 percent higher employment growth and 80 percent higher sales growth five years later. Patent winners also pursue more and higher quality follow-on innovation. Winning a first patent boosts a startup's subsequent growth and innovation by facilitating access to funding from VCs, banks and public investors.

Deepak Hegde's research focuses on the challenges posed by innovation to business strategy and public policy. His current projects study the role of patent laws on innovation, entrepreneurship and the allocation of public funds for biomedical research.

While at CESifo, Mr Hegde will conduct research on the effects of education on entrepreneurs and the determinants of biomedical research productivity. He will also present his research on startups and patents at a CESifo seminar.

Deepak Hegde is an Associate Professor at New York University's Stern School of Business and a CESifo Research Network Affiliate. He is also a Thomas Alva Edison Research Fellow at the United States Patent and Trademark Office and Faculty Affiliate at the Engelberg Center on Innovation Law & Policy at the New York University School of Law. He also serves as a Senior Editor at Organization Science. Mr Hegde's research has been published in journals such as Science, Nature Biotechnology, Management Science, Organization Science, Journal of Law & Economics, Journal of Economics & Management Strategy and Research Policy.