Innovation and Entrepreneurship: A First Look at Linkage Data of Japanese Patent and Enterprise Census

Motohashi Kazuyuki

Professor, Department of Technology Management for Innovation, The University of Tokyo and The Research Institute of Economy, Trade and Industry, 7-3-1 Hongo Bunkyo Tokyo, Japan, Tel: +81-3-5841-1828, Fax: +81-3-5841-1829 motohashi@tmi.t.u-tokyo.ac.jp

JEL Classification: L25, O13

Abstract

This paper presents the results of a comprehensive analysis of the innovation activities of the entire population of Japanese firms with the use of a linked dataset from the Establishment and Enterprise Census and the Institute of Intellectual Property Patent Database (Japan Patent Office patent application data). In 2006, approximately 1.4% of approximately 4.5 million firms filed for patents, and substantial patenting activities were observed not only in the manufacturing field but also in other sectors, such as business-to-business services and finance. In addition, firm survival and growth are regressed with patenting and open innovation (measured by the joint patent application with other firms and universities). Results show that innovation activities measured by patenting are positively correlated with firm performance. Furthermore, the relationship between patenting and survival rate is strong for large firms, whereas that between patenting and firm growth is strong for small firms.

Keywords:

Enterprise Census, Patent database, Entry and exit of firms

Acknowledgments

This paper is based on the results of the Research Institute of Economy, Trade and Industry (RIETI) research project on “open innovation.” The author would like to thank the participants of the RIETI Discussion Paper seminar and Professor Masayo Kani (Tezukayama University) for her effort in linking the Establishment and Enterprise Census and the IIP Patent Database. In addition, the author acknowledges the helpful comments of the participants of the 2015 SJE International Symposium “Firms and Innovation in Asia” (October 30 and 31, 2015 at Seoul), particularly the discussant of my paper, Professor Taehyun Jung (Hanyang University).

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