Amidst all the economic chaos and uncertainty, RBI once again comes to rescue both the Centre and State governments.
Archive for May 31st, 2021
RBI comes to the rescue of Centre and States
May 31, 2021The impact of bankruptcy on innovative firms
May 31, 2021Song Ma, Joy Tianjiao Tong & Wei Wang in this NBER paper:
This paper studies how innovative firms manage their innovation portfolios after filing for Chapter 11 reorganization using three decades of data. We find that they sell off core (i.e., technologically critical and valuable), rather than peripheral, patents in bankruptcy. The selling pattern is driven almost entirely by firms with greater use of secured debt, and the mechanism is secured creditors exercising their control rights on collateralized patents. Creditor-driven patent sales in bankruptcy have implications for technology diffusion—the sold patents diffuse more slowly under new ownership and are more likely to be purchased by patent trolls.
Mostly Economics 
