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An examination of the intertemporal returns of patented inventions

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  • Giummo, Jesse

Abstract

This paper examines the intertemporal returns of patented inventions using estimates of patent value obtained from German employee inventors’ compensation records. The paper finds heterogeneity in the mean age and dispersion of the annual returns by technology and cumulative patent value. While the returns earned by most patents dissipate rapidly, high valued patents tend to receive significant returns through the latter part of the patent term. These high valued patents which account for the vast majority of the realized returns, further can be identified based on past returns, relatively early in the patent term. These findings suggest that while shortening the length of the patent term could substantially reduce realized returns, graduated maintenance fees may not adversely affect returns, as firms would be able to identify and selectively renew the subset of high valued patents.

Suggested Citation

  • Giummo, Jesse, 2014. "An examination of the intertemporal returns of patented inventions," Research Policy, Elsevier, vol. 43(8), pages 1312-1319.
    • Handle: RePEc:eee:respol:v:43:y:2014:i:8:p:1312-1319
    DOI: 10.1016/j.respol.2014.03.011
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Patents; Innovation; Intellectual property rights;
    All these keywords.

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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