NEWSRELEASE
For Release: February 27,
2003
Contact: John McDowell (202) 205-6941
SBA Number: 03-10 ADVO
john.mcdowell@sba.gov
New Study Confirms Small Businesses Power As Innovators
Small Firm Patents More Likely To Be Cited By Subsequent Patents
WASHINGTON, D.C. Americas technological innovators are found in small firms, and they are more productive than their larger counterparts. These findings are revealed in a study, "Small Serial Innovators: The Small Firm Contribution to Technical Change," released today by the Office of Advocacy of the U.S. Small Business Administration (SBA).
"This report shows how important small business is to innovation in America," said Thomas M. Sullivan, Chief Counsel for Advocacy. "Its clear that small innovative firms with multiple inventions and patents are vitally important in newer and science-intensive technologies. Their importance means that President Bush is right on target by focusing his economic growth package on small business. Other federal, state, and local policy makers should take this into consideration when they design tax and regulatory incentives for business growth," he concluded.
The study, written by Diana Hicks of CHI Research, analyzes patent applications from 1996 to 2000 by large and small firms. It found that on average small firms produce more highly cited patents than larger firms do. Smaller firm patents were cited in subsequent patent applications 28 percent more often than those of larger firms and were twice as likely to be among the one percent most cited patents. Prior research has established that highly cited patents represent economically and technically important inventions.
The Office of Advocacy examines the role and status of small business in the economy and independently represents the views of small business to Congress and the President. It is the source for small business statistics presented in user-friendly formats and it funds research into small business issues.
For more information and a copy of the report, visit the Office of Advocacy website at www.sba.gov/advo.
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Note To Editors: A geographical listing of innovative small firms is available. For a copy contact John McDowell at john.mcdowell@sba.gov or call (202) 205-6941.
Created by Congress in 1976, the Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. Appointed by the President and confirmed by the U.S. Senate, the Chief Counsel for Advocacy directs the office. The Chief Counsel advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. Economic research, policy analyses, and small business outreach help identify issues of concern. Regional Advocates and an office in Washington, DC, support the Chief Counsels efforts. For more information on the Office of Advocacy, visit www.sba.gov/advo, or call (202) 205-6533.