de Rassenfosse, G., 2013. "Do firms face a trade-off between the quantity and the quality of their inventions?". Research Policy 42(5), 1072-1079.

Abstract
This paper presents evidence that firms face a trade-off between the quantity and quality of their research output. The econometric analysis uses survey data on patent applicants at the European Patent Office and addresses the identification problem caused by differences in firms' propensity to patent. The existence of a trade-off emphasizes the need to take the quality of research output into account when assessing research productivity. It also raises questions about the optimal quantity-quality mix that firms should target.

Keywords: innovation performance; invention quality; invention quantity; patent explosion; propensity to patent; research productivity
JEL classification: D83; L25; O31; O33

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This article:

• Shows that firms face a trade-off between invention quality and quantity using survey data;
• Uses an instrumental variable approach to address the identification problem caused by differences in patent propensity;
• Explains that invention quality must be taken into account when assessing research productivity;
• Provides an insight into the patent explosion (increase in the number of patent applications but decrease in their quality): an increase in the rate of inventions can lead to a decrease in the average quality of inventions.

• How SMEs exploit their intellectual property assets: Evidence from survey data

• Quality vs quantity: Strategic interactions and the patent inflation (mimeo)
• Do firms face a trade-off between the quantity and the quality of their inventions?, Melbourne Institute Working Paper 6/13