In a new working paper, “Declining Patent Reliability and Venture Capital Reallocation,” Mark Schultz finds investment has shifted away from patent-intensive sectors in the United States between 2004 to 2017.
Assessments from investors and innovators suggest that greater uncertainty around patent rights pushes capital toward industries with shorter development timelines and less reliance on intellectual property.
The paper’s findings underscore the importance of predictable and reliable patent rights in sustaining investment in biopharmaceutical innovation.