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Patent Statistics as an Innovation Indicator? Evidence from The Hard Disk Drive Industry

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  • Mitsuru Igami

    (Yale Department of Economics)

  • Jai Subrahmanyam

    (Yale School of Management)

Abstract

We assess the usefulness of patent statistics as an indicator of innovation, using a direct measure of innovation in the hard disk industry (1976–1998). Three findings emerge: (i) patents “predict” innovations better than a random guess, and a simple refinement makes them more useful; (ii) conditional on actually innovating, conglomerates and larger firms patent more than specialised startups and smaller firms; and (iii) patent reforms seem to make the patent—innovation relationship nonstationary. These results suggest that researchers should use caution when comparing patents of different types of firms and across years.

Suggested Citation

  • Mitsuru Igami & Jai Subrahmanyam, 2019. "Patent Statistics as an Innovation Indicator? Evidence from The Hard Disk Drive Industry," The Japanese Economic Review, Springer, vol. 70(3), pages 308-330, September.
    • Handle: RePEc:spr:jecrev:v:70:y:2019:i:3:d:10.1111_jere.12234
    DOI: 10.1111/jere.12234
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    References listed on IDEAS

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    Cited by:

    1. Yuyu Chen & Mitsuru Igami & Masayuki Sawada & Mo Xiao, 2021. "Privatization and productivity in China," RAND Journal of Economics, RAND Corporation, vol. 52(4), pages 884-916, December.
    2. Joseph Amankwah-Amoah & Stephen Kehinde Medase, 2024. "Extracting Innovation Value from Intellectual Property: Evidence from sub-Saharan Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 8933-8967, June.
    3. Ventsislava Nikolova-Minkova, 2023. "Bulgarian and Foreign Patent Activity in Bulgaria and Bulgarian Patent Activity Abroad by Technological Areas and Fields for the Period 2010-2021," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 82-114.
    4. Yun Hou & I.P.L. Png & Xi Xiong, 2023. "When stronger patent law reduces patenting: Empirical evidence," Strategic Management Journal, Wiley Blackwell, vol. 44(4), pages 977-1012, April.
    5. Escolar, Emerson G. & Hiraoka, Yasuaki & Igami, Mitsuru & Ozcan, Yasin, 2023. "Mapping firms’ locations in technological space: A topological analysis of patent statistics," Research Policy, Elsevier, vol. 52(8).

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