Patents and sustainable innovation in Indian Startups

• Published date: 01 November 2023
• Author: Renooj Jacob,Purna Prasad Arcot
• Date: 01 November 2023
• DOI: http://doi.org/10.1111/jwip.12283

Received: 10 March 2023

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Accepted: 20 April 2023

DOI: 10.1111/jwip.12283

NOTE

Patents and sustainable innovation in Indian

Startups

Renooj Jacob |Purna Prasad Arcot

School of Management, CMR University,

Bengaluru, Karnataka, India

Correspondence

Renooj Jacob, School of Management, CMR

University, No 5, Bhuvanagiri, OMBR Layout,

Banaswadi, Bengaluru, Karnataka 560043,

India.

Email: Renooj.jacob@cmr.edu.in

Abstract

Patents help in protecting research and development efforts in

an organisation. They are known to increase valuation during

merger and acquisition and act as signal for investors to make

investment decisions in startups. Despite the value that patents

add to a firm, vast majority of patents remain unutilised across

organisations. Environmental, social, and governance (ESG)

investing is gaining popularity and investors are increasingly

using ESG analysis to make investments. In this paper, we

study patents filed by Indian startups which pertain to one or

more ESG factors, that is, environmental, social, and govern-

ance factors. The startups selected were externally funded

startups. We believe that startups having patents pertaining to

ESG factors will foster sustainable innovation, responsible

investments, and better patent utilisation in startups.

KEYWORDS

ESG, patent utilisation, responsible investment, startups,

sustainable innovation

1|INTRODUCTION

R&D is core to innovation. Assigning a value to the results of R&D, also known as valorisation, is often considered a

measure of the return on investment for universities, public research organisations, and public–private partnerships

conducting research. One of the outcomes of R&D is patent filing. Often, patent applications and granted patents

are used as a measure of efficiency of the R&D work. A frequent problem that firms cite is their inability to

commercialise or utilise the patents they own. Studies reveal that most patents remain unexploited or unutilised

J World Intellect Prop. 2023;26:503–508. wileyonlinelibrary.com/journal/jwip © 2023 John Wiley & Sons Ltd.

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Abbreviations: CSR, Corporate social responsibility; EPO, European Patent Office; ESG, Environmental, Social, and Governance; IFRS, International

Financial Reporting Standards; ISSB, International Sustainability Standards Board; SASB, Sustainability Accounting Standards Board; TRIPS,

Trade‐Related Aspects of Intellectual Property Rights; USPTO, US Patent and trademark office; WTO, World Trade Organisation.