Relationship between patent statistics and firm performance: a meta analytical review

Purpose Firms are often challenged to appropriate performance benefits of patenting activities. Research on performance outcomes of patenting activity is beset with mixed results and ambiguity. Hence, the purpose of this study is to quantitatively aggregate the extant research on patent–performance relationship. Furthermore, the paper also evaluates the moderating role of patent measurement basis, performance measurement typology, industry specificity, status of economic development and pre and post TRIPS period on the concerned relationship. Design/methodology/approach To serve the purpose, 259 effect sizes from 103 studies were analysed using the technique of meta-analysis. Findings The results highlight a significant positive association between patent statistics and firm performance at an aggregate level. The association is also significantly positive for different basis of patent measurement and firm performance. Further, the results highlight the fact that significant variation in association between patent statistics and firm performance exist across different measures of firm performance, and the relationship is stronger in the pharmaceutical sector as compared to others. Practical implications The findings will aid the managers, practitioners, researchers and policy makers to better understand the possible reasons for the heterogeneity in the given context and will help organisations to strategically plan, execute and strengthen the patenting activities to appropriate maximum returns. Originality/value The study is an original work that uses the technique of meta-analysis to investigate the patent–performance relationship. The findings will significantly contribute to the existing literature and will provide avenues for future research.