It also finds that while manufacturing firms are more likely to patent than firms in other sectors, most patenting firms are in the services and wholesale sectors. The first, by Farre-Mensa, Hegde et al (2016), focuses on the impact of IP rights on companies' ability to raise finance. The research presents causal evidence of the direct benefits of patent rights in a large sample of start-ups. It shows that patents offer gains to entrepreneurs and small inventors, especially if processed in a timely manner. In particular, patents appear to play an important role in reducing uncertainty and alleviating information asymmetries in the market for entrepreneurial capital (i.e. fundraising).