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An Analysis of Small Business Patents by Industry and Firm Size

This study is the third in a series that examines small business patent activity. The authors created a database of  1,293 technology firms with 15 or more patents issued between 2002 and 2006. These firms are designated as innovative firms because of  their high level of  patent activity. Using this database, the authors analyze the relative strengths of  small and large technology businesses, including information such as the industry and technology within which the firm patents and the importance of  the patent. The results demonstrate that small businesses that innovate are indeed special and that the technology they create helps define the cutting edge in a number of  industries. The report presents a convincing case that small firms in emerging industries are one of  the greatest engines of  American economic growth. sba.pdf