Explaining the Trademark-Innovation Linkage: the Role of Patents and Trademark Filing Strategies.

The use of trademark data in innovation studies is in its infancy, while the results of the first empirical studies into trademarks are promising. However, since there is no one-to-one relationship between trademarks and innovation, the use of raw trademark counts has important drawbacks, particularly in firm-level studies. In this paper we exploit data recorded in trademark databases and matched patent and survey data to study the reference of new trademarks to innovation. We find that if an applicant has a track record of patent application then new trademarks more frequently refer to innovation, and relatively frequently to radical innovation. This holds particularly for start-ups in manufacturing industries. Trademarks filed for brand creation or extension purposes more frequently refer to both patented and unpatented innovations as opposed to trademarks filed for other branding purposes.