Working Paper: NBER ID: w21140
Authors: Josh Lerner; Greg Rafert
Abstract: Our analysis seeks to understand the impact of changing allocations of property rights on investment in new firms. We focus on the Cartoon Network, et al. v. Cablevision decision in the U.S., which narrowed the protection enjoyed by content creators (e.g., movie studios) and gave greater rights to downstream technology firms, as well as decisions in France and Germany that took an opposite view. Our findings regarding relative venture capital investment in the U.S. and Europe, across Europe, and between the various judicial circuits of the U.S. suggest that decisions around the allocation of property rights can have economically and statistically significant impacts on investment in innovative enterprises.
Keywords: Property Rights; Venture Capital; Cloud Computing; Copyright Law; Investment Decisions
JEL Codes: G24; O34
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| VC investment in U.S. cloud computing firms (L86) | alleviation of fears of litigation for investors (G24) |
| VC investment in cloud computing firms (G24) | EU investment (F21) |
| Cablevision decision (L96) | VC investment in U.S. cloud computing firms (L86) |
| France and Germany decisions (F55) | VC investment in cloud computing firms (G24) |