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Assessing the value of patent portfolios: an international country comparison

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  • Torben Schubert

    (Fraunhofer Institute for Systems and Innovation Research ISI
    Technical University)

Abstract

Patent counts have been extensionally used to measure the innovative capacities of countries. However, since economic values of patents may differ, simple patent counts may give misleading rankings, if the patents of one country are on average more valuable than those of another. In the literature several methods have been proposed, which shall adjust for these differences. However, often these do not possess a solid economic micro-foundation and therefore are often ad-hoc and arbitrary procedures. In this paper, we intend to present an adjustment method that is based on the analysis of renewal decisions. The method builds on the theoretical model used in Schankerman and Pakes (1986) and Besson (2008) but goes beyond both approaches in that it recovers the important long tail of the value distribution. It also transfers Besson’s (2008) econometric methodology (applicable to the organisational structures of the US Patent and Trademark Office) also to the European Patent Office which is necessary, since each application here may split up into several national patent documents. The analysis is performed for 22 countries. Exemplarily, we find that in the cohort of 1986 patent applications, Danish patents are about 60% more valuable than the average patent. German patents are a bit below average. Japanese patents are of least value. In the cohort of 1996, Danish patents lose some of their lead but are still more valuable than the average. While German are a bit above average, Japanese patents even fall further behind (possibly due to the economic downturn in since the mid of 1990ies).

Suggested Citation

  • Torben Schubert, 2011. "Assessing the value of patent portfolios: an international country comparison," Scientometrics, Springer;Akadémiai Kiadó, vol. 88(3), pages 787-804, September.
    • Handle: RePEc:spr:scient:v:88:y:2011:i:3:d:10.1007_s11192-011-0454-2
    DOI: 10.1007/s11192-011-0454-2
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    References listed on IDEAS

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    Cited by:

    1. Neuhäusler, Peter & Frietsch, Rainer, 2013. "Patents as indicators for knowledge generation and diffusion in mechanical engineering and green biotechnology: A first assessment," Discussion Papers "Innovation Systems and Policy Analysis" 34, Fraunhofer Institute for Systems and Innovation Research (ISI).
    2. Neuhäusler , Peter & Schubert, Torben & Frietsch , Rainer & Blind , Knut, 2015. "Managing Portfolio Risk in Strategic Technology Management: Evidence from a Panel Data Set of the World’s Largest R&D Performers," Papers in Innovation Studies 2015/41, Lund University, CIRCLE - Centre for Innovation Research.
    3. Hui-Yun Sung & Chun-Chieh Wang & Dar-Zen Chen & Mu-Hsuan Huang, 2014. "A comparative study of patent counts by the inventor country and the assignee country," Scientometrics, Springer;Akadémiai Kiadó, vol. 100(2), pages 577-593, August.
    4. Shu-Hao Chang, 2017. "The evolutionary growth estimation model of international cooperative patent networks," Scientometrics, Springer;Akadémiai Kiadó, vol. 112(2), pages 711-729, August.
    5. Grillitsch, Markus & Schubert, Torben & Srholec, Martin, 2019. "Knowledge base combinations and firm growth," Research Policy, Elsevier, vol. 48(1), pages 234-247.
    6. Manuel Acosta & Daniel Coronado & Esther Ferrándiz & Manuel Jiménez, 2022. "Effects of knowledge spillovers between competitors on patent quality: what patent citations reveal about a global duopoly," The Journal of Technology Transfer, Springer, vol. 47(5), pages 1451-1487, October.
    7. Zhao Qu & Shanshan Zhang & Chunbo Zhang, 2017. "Patent research in the field of library and information science: Less useful or difficult to explore?," Scientometrics, Springer;Akadémiai Kiadó, vol. 111(1), pages 205-217, April.
    8. Grillitsch, Markus & Schubert, Torben & Srholec, Martin, 2016. "Knowledge diversity and firm growth: Searching for a missing link," Papers in Innovation Studies 2016/13, Lund University, CIRCLE - Centre for Innovation Research.

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