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A Dynamic Stochastic Ananlysis of International Patent Application and Renewal Processes

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  • Yi Deng

Abstract

This paper develops a dynamic stochastic model to examine the joint patent application and renewal behavior under an international patent protection regime. This framework makes it possible to utilize both the cross-sectional (multi-country filing) and the time-series (patent renewal) dimensions of available international patent data to evaluate the private value of patent protection, and allows one to distinguish more aspects of patent value. The private value of European patents in the pharmaceutical and the electronics industries in the 1980's are examined, and the estimation results indicate substantial differences in the patent application and renewal patterns in these two industries. Pharmaceutical patents on average are endowed with higher initial values, and the patent holders seek for protection in more countries than the electronic patent holders. However, pharmaceutical patents depreciate faster than electronics patents, and consequently have lower renewal rates and shorter patent lives.

Suggested Citation

  • Yi Deng, 2004. "A Dynamic Stochastic Ananlysis of International Patent Application and Renewal Processes," Econometric Society 2004 North American Summer Meetings 389, Econometric Society.
    • Handle: RePEc:ecm:nasm04:389
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    Cited by:

    1. Andreas Panagopoulos & Kyriakos Drivas, 2016. "Using the Patent Term Changes in Assessing the Evolution of Patent Valuation from Filing to Maturity," Working Papers 1608, University of Crete, Department of Economics.
    2. Kim, Jinyoung, 2017. "Racing against Time in Research: A Study of the 1995 U.S. Patent Law Amendment," IZA Discussion Papers 10815, Institute of Labor Economics (IZA).
    3. Charlotta Grönqvist, 2009. "The private value of patents by patent characteristics: evidence from Finland," The Journal of Technology Transfer, Springer, vol. 34(2), pages 159-168, April.
    4. Kyriakos Drivas & Claire Economidou & Elena Ketteni & Konstantina Kottaridi, 2021. "Firms’ knowledge investment and market responses," Empirical Economics, Springer, vol. 61(5), pages 2363-2394, November.
    5. Bessen, James, 2008. "The value of U.S. patents by owner and patent characteristics," Research Policy, Elsevier, vol. 37(5), pages 932-945, June.
    6. Deng, Yi, 2005. "Private Value of European Patents," Departmental Working Papers 0513, Southern Methodist University, Department of Economics.
    7. Jinyoung Kim, 2010. "Patent Portfolio Management of Sequential Innovations," Discussion Paper Series 1005, Institute of Economic Research, Korea University.
    8. Jinyoung Kim, 2015. "Patent Portfolio Management of Sequential Innovations: Theory and Empirics," Discussion Paper Series 1504, Institute of Economic Research, Korea University.
    9. Malte Mosel, 2011. "Big patents, small secrets: how firms protect inventions when R&D outcome is heterogeneous," Working Papers 105, Bavarian Graduate Program in Economics (BGPE).
    10. Dujuan Huang & Hongbo Duan & Gupeng Zhang, 2020. "Analysis on the Enterprises’ Innovation Quality Based on the Patent Value: A Comparison between Public and Private Enterprises in China," Sustainability, MDPI, vol. 12(8), pages 1-15, April.
    11. Rudyk, Ilja, 2013. "Deferred Patent Examination," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 416, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    12. Zhang, Gupeng & Lv, Xiaofeng & Zhou, Jianghua, 2014. "Private value of patent right and patent infringement: An empirical study based on patent renewal data of China," China Economic Review, Elsevier, vol. 28(C), pages 37-54.
    13. Deng, Yi, 2011. "A dynamic stochastic analysis of international patent application and renewal processes," International Journal of Industrial Organization, Elsevier, vol. 29(6), pages 766-777.
    14. Harhoff, Dietmar & Hoisl, Karin & Reichl, Bettina & van Pottelsberghe de la Potterie, Bruno, 2009. "Patent validation at the country level--The role of fees and translation costs," Research Policy, Elsevier, vol. 38(9), pages 1423-1437, November.
    15. Jinyoung Kim, 2015. "Patent Portfolio Management of Sequential Inventions: Evidence from US Patent Renewal Data," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 47(2), pages 195-218, September.
    16. Deng, Yi, 2007. "Private value of European patents," European Economic Review, Elsevier, vol. 51(7), pages 1785-1812, October.
    17. Rudyk, Ilja, 2012. "The License of Right, Compulsory Licensing and the Value of Exclusivity," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 415, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.

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    More about this item

    Keywords

    Intellectual Property Rights; Patent Value; Patent Application; Patent Renewal;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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