View article

We investigate whether firm performance is related to the accumulated stock of technological knowledge associated with the Fourth Industrial Revolution (4IR) and, if so, whether the firm’s history in 4IR technology development affects such a relationship. We exploit a rich longitudinal matched patent-firm data set on the population of large firms that filed 4IR patents at the European Patent Office (EPO) between 2009 and 2014, while reconstructing their patent stocks from 1985 onward. To identify 4IR patents, we use a novel two-step procedure proposed by EPO (2020, Patents and the Fourth Industrial Revolution: The Global Technology Trends Enabling the Data-Driven Economy, European Patent Office), based on Cooperative Patent Classification codes and on a full-text patent search. Our results show a positive and significant relationship between firms’ stocks of 4IR patents and labor and total factor …