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The Dynamics Between Forward Citations and Price of Singleton Patents

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  • Shyam Sreekumaran Nair

    (Institute of Management Technology Nagpur, 35 KM Milestone, Katol Road, Nagpur 441502, India)

  • Mary Mathew

    (Department of Management Studies, Indian Institute of Science, Bangalore 560012, India)

Abstract

In recent years, business practitioners are seen valuing patents on the basis of the market price that the patent can attract. Researchers have also looked into various patent latent variables and firm variables that influence the price of a patent. Forward citations of a patent are shown to play a role in determining price. Using patent auction price data (of Ocean Tomo now ICAP patent brokerage), we delve deeper into the role of forward citations. The successfully sold 167 singleton patents form the sample of our study. We found that, it is mainly the right tail of the citation distribution that explains the high prices of the patents falling on the right tail of the price distribution. There is consistency in the literature on the positive correlation between patent prices and forward citations. In this paper, we go deeper to understand this linear relationship through case studies. Case studies of patents with high and low citations are described in this paper to understand why some patents attracted high prices. We look into the role of additional patent latent variables like age, technology discipline, class and breadth of the patent in influencing citations that a patent receives.

Suggested Citation

  • Shyam Sreekumaran Nair & Mary Mathew, 2015. "The Dynamics Between Forward Citations and Price of Singleton Patents," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 12(03), pages 1-12.
    • Handle: RePEc:wsi:ijitmx:v:12:y:2015:i:03:n:s0219877015400039
    DOI: 10.1142/S0219877015400039
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    References listed on IDEAS

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    1. Bronwyn H. Hall & Adam B. Jaffe & Manuel Trajtenberg, 2001. "The NBER Patent Citation Data File: Lessons, Insights and Methodological Tools," NBER Working Papers 8498, National Bureau of Economic Research, Inc.
    2. Alberto Di Minin & Mario Benassi, 2008. "Playing In Between: Patents’ Brokers In Markets For Technology," Working Papers 200802, Scuola Superiore Sant'Anna of Pisa, Istituto di Management.
    3. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. Kathryn Rudie Harrigan & Yunzhe Fang, 2020. "The financial benefits of persistently high forward citations," The Journal of Technology Transfer, Springer, vol. 45(2), pages 619-647, April.
    2. Carsten C. Guderian, 2019. "Identifying Emerging Technologies with Smart Patent Indicators: The Example of Smart Houses," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(02), pages 1-24, April.

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