The impact of private equity on firms׳ patenting activity

Amess, Kevin, Stiebale, Joel and Wright, Mike (2015) The impact of private equity on firms׳ patenting activity. European Economic Review, 86 . pp. 147-160. ISSN 0014-2921

Full text not available from this repository.


The paper analyses the impact of private equity (PE) backed leveraged buyouts (LBOs) on innovative output (patenting). Using a sample of 407 UK deals we find that LBOs have a positive causal effect on patent stock and quality-adjusted patent stock. Our results imply a 6% increase in quality-adjusted patent stock three years after the deal. The increase in innovative activity is concentrated among private-to-private transactions with a 14% increase in the quality-adjusted patent stock. We also find evidence suggesting that PE firms facilitate the relaxation of financial constraints. In sum, our findings suggest that PE firms do not promote short-term cost-cutting at the expense of entrepreneurial investment opportunities with a long-term pay-off.

Item Type: Article
Keywords: Private equity; Leveraged buyout; Entrepreneurial buyouts; Innovation
Schools/Departments: University of Nottingham, UK > Faculty of Social Sciences > Nottingham University Business School
Identification Number:
Depositing User: Eprints, Support
Date Deposited: 04 Mar 2016 16:20
Last Modified: 04 May 2020 17:17

Actions (Archive Staff Only)

Edit View Edit View