Private equity, venture capital and patents: a bibliometric review and future research

Patents are the most important tool to protect innovation and support the value creation process in early-stage financing as well as in Private Capital investments. This work studies the growing body of academic literature concerning the relations between Private Equity, Venture Capital and patents and formulates a theoretical framework and an agenda for future research. We review the specific body of research resulting from the entwining of corporate finance and innovation management. Through a bibliometric analysis of the literature, we adopt a quantitative approach to develop a content analysis on the 292 articles found. We present the open debate related to the improvement of the metrics to proxy the technological value of a company's innovation, especially in relation to startups and venture capital investments. We assess the key contributions, thematic clusters and emerging themes, formulating a theoretical framework grounded on the state of research. Additionally, we highlight the lack of integration of findings on signalling before the investment and the strategic use of Intellectual Property Protection Mechanisms assets by the investor to create value during the holding period. Finally, we outline future venues of research in the study of the relations between investments in innovative companies and positive socio-economic externalities.