Measuring Characteristics and Employment Dynamics of US Inventors

Oct 24, 2022

Abstract: Innovation is a key driver of long run economic growth. Studying innovation requires a clear view of the characteristics and behavior of the individuals that create new ideas. A general lack of rich, large-scale data has constrained such analyses. We address this by introducing a new dataset linking patent inventors to survey, census, and administrative microdata at the U.S. Census Bureau. We use this data to provide a first look at the demographic characteristics, employer characteristics, earnings, and employment dynamics of inventors. These linkages, which will be available to researchers with approved access, dramatically increases the scope of what can be learned about inventors and innovative activity.

Date: September 2022

Date Added: 9/26/2022, 9:39:55 AM

Seminar notes:

Objective: To understand who inventors are and where they work and how that affects patenting patterns

Importance: People are an important component of the innovation process. Although inventors have been of interest for a while, having the large administrative data helps with coverage

Data & Key Variables:

Patent data matched to PIKs (PVS) and businesses. Disambiguated using LEHD person-employer match

Methodology: Compare patent activity in an event study of inventors hired at the same time by a young firm versus an incumbent firm, matched on characteristics of inventor (age in particular)

Results: Asians and foreign-born are disproportionate share of inventors

Declining share of inventors working for young firms and fewer inventors are starting businesses (-44%)

Inventor-founded (defined as inventor being a top earner in year 1) firms are larger and grow faster

Geographic concentration of inventors is rising

Inventors working for incumbents versus young firms have less impactful patents

Key Table/Figure:

Dani’s Reading Notes

Discussion about this post