Explaining the Innovator-Inventor Gap: Evidence from Engineers

Abstract

We investigate the process of inventing in high-tech firms. Using firm administrative data and surveying thousands of engineers, we document the opt-in, competitive nature of intellectual property development. Only a third of engineers submit ideas and only half become patent applications. We find that women participate significantly less in each invention stage, creating a gap between being an innovator and becoming an inventor. Key factors influencing this gap include equitable management practices, motivation, and culture. Significantly, patents with female inventors from firms with less effective cultures receive more citations, suggesting that fostering inclusive innovation can enhance welfare and firm value.