International Patent Strategies of Small and Large Firms: An Empirical Study of Nanotechnology

The aim of this article is to investigate to what extent small‐firm foreign patents differ from those of their larger counterparts. The research setting consists of the population of U.S.‐owned small and large businesses with patent applications at the World International Patent Organization during 1996–2006 in the emerging field of nanotechnology. Findings reveal a significant and growing contribution of small firms to the globalization of patents. The analysis also suggests that small‐firm patents tend to be more novel and embedded in domestic innovation networks than large‐firm patents. Policy implications are multiple, including putting international patenting on the policy agenda and helping highly innovative small companies to explore foreign commercial opportunities in new markets of capital and technology.