Farre-Mensa goes AFF---it proves that giving patents is good.

We emphasize that our study does not imply that the U.S. patent system is optimal, or even net-welfare enhancing, and so should not be reformed. Rather, our findings alter the balance of evidence available to those considering a major revamp of the system by highlighting the real benefits of patents, particularly for startups. In addition to informing the current debate on patent reform, our study provides micro-evidence on the mechanisms through which institutions that secure property rights alleviate information frictions and stimulate innovation and entrepreneurship—activities that underpin modern macroeconomic growth models such as Aghion and Howitt (1992) and Acemoglu and Akcigit (2012).