I collect
a comprehensive sample of 2213 Venture Capital-backed initial public
offerings (VC-backed IPOs) between 1981 and 2004, including 842 VC-backed
IPOs with successful patent application(s) five years before IPOs (VC-backed
IPOs with patents) and 1371 VC-backed IPOs without patent filing(s) five
years before IPOs (VC-backed IPOs without patents), and examine the two-year
to five-year stock performance of these offerings. VC-backed IPOs with
patents appear to outperform VC-backed IPOs without patents in both
cross-sectional analyses and calendar-time portfolio analyses.