Impact of collaboration and funding on the propensity to patent of Canadian biotechnology firms 1999-2005

Abstract

Using the four biotechnology uses and development surveys of Statistics Canada, we analyse the importance of collaboration, funding and support, as well as contracting, R&D and IP strategies on the propensity to patent of Canadian biotechnology firms. Our model accounts for the potential endogeneity due to the simultaneity of some of these strategies. Controlling for various firm characteristics, the stage of development of the firm and the sources of its revenues, we find that collaboration with other firms does matter for patenting, as well as R&D, even when controlling for potential endogeneity. IP strategies and contracting out activities also increase the propensity of a firm to patent, and so does angel and venture capital funding.