TLDR:
- Startups in emerging industries contribute to the development of new technologies and spur more future inventions than established companies, according to research from Texas McCombs.
- A study on the photovoltaic (PV) cell industry found that although startups accounted for only 13% of patents, they had a disproportionately high number of future citations.
- Startups’ inventions can lead to more innovation by other companies due to resource disparities, academic citations, and the lack of a reputation for toughness.
According to research from Texas McCombs, startups in emerging industries play a crucial role in the development of new technologies and innovation. The study, conducted by Professor Francisco Polidoro Jr., focused on the photovoltaic (PV) cell industry, which converts sunlight into electricity. The research found that although startups accounted for only 13% of patents in the industry, their inventions received a disproportionately high number of future citations.
Polidoro suggests several reasons why startups’ inventions lead to more innovation by other companies. One reason is resource disparities. Established companies often have more resources to build on a startup’s innovations than the startup itself does. Additionally, academic citations play a role in attracting attention to startups’ patents, as university research helps identify the most promising inventions in emerging industries. A startup’s poor record in building on its own innovations also makes its patents more likely to be cited by other companies.
The study also found that established companies can benefit from a reputation for filing patent infringement lawsuits, as rivals are less likely to build on the inventions of litigious companies. Startups, on the other hand, may lack the resources to sustain a litigious strategy and therefore struggle to build a reputation for toughness.
Polidoro believes that these findings have implications for other rapidly evolving technology industries, such as artificial intelligence. The dynamic interplay between startups and established companies is vital for the development of emerging industries fueled by new technologies. While startups may face challenges in profiting from their innovations, their role in driving innovation and spurring future inventions is undeniable.