We analyze how frivolous patent-infringement claims made by non-practicing entities (NPEs, or "patent trolls") affect startups' ability to grow and create jobs, innovate, and raise capital. Our identification strategy exploits the staggered adoption of anti-troll laws in 32 U.S. states. The laws...

We show that the acquisition of a startup inventor's first patent has a negative effect on the subsequent productivity of the patent's inventor, leading to 6.7 fewer patents being granted to the inventor over five years. This effect is not due to the inventor focusing on high-quality...