Advanced Search
MyIDEAS: Login to save this paper or follow this series

Patent Value and Citations: Creative Destruction or Strategic Disruption?

Contents:

Author Info

  • David S. Abrams

    ()
    (Penn Law School & Wharton Business Economics & Public Policy Department, University of Pennsylvania,)

  • Ufuk Akcigit

    ()
    (Department of Economics, University of Pennsylvania & NBER)

  • Jillian Popadak

    ()
    (Wharton Business Economics & Public Policy Department, University of Pennsylvania)

Registered author(s):

    Abstract

    Prior work suggests that more valuable patents are cited more and this view has become standard in the empirical innovation literature. Using an NPE-derived dataset with patent-specific revenues we find that the relationship of citations to value in fact forms an inverted-U, with fewer citations at the high end of value than in the middle. Since the value of patents is concentrated in those at the high end, this is a challenge to both the empirical literature and the intuition behind it. We attempt to explain this relationship with a simple model of innovation, allowing for both productive and strategic patents. We find evidence of greater use of strategic patents where it would be most expected: among corporations, in fields of rapid development, in more recent patents and where divisional and continuation applications are employed. These findings have important implications for our basic understanding of growth, innovation, and intellectual property policy.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://economics.sas.upenn.edu/system/files/13-065.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Penn Institute for Economic Research, Department of Economics, University of Pennsylvania in its series PIER Working Paper Archive with number 13-065.

    as in new window
    Length: 41 pages
    Date of creation: 05 Nov 2013
    Date of revision:
    Handle: RePEc:pen:papers:13-065

    Contact details of provider:
    Postal: 3718 Locust Walk, Philadelphia, PA 19104
    Phone: 215-898-9992
    Fax: 215-573-2378
    Email:
    Web page: http://economics.sas.upenn.edu/pier
    More information through EDIRC

    Related research

    Keywords: productive innovation; defensive innovation; patents; creative destruction; citations; patent value; competition; intellectual property; entrepreneurship; strategic patenting; defensive patenting; patent thickets; fencing patents.;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Iain M. Cockburn & Megan J. MacGarvie, 2006. "Entry and Patenting in the Software Industry," NBER Working Papers 12563, National Bureau of Economic Research, Inc.
    2. Zvi Griliches, 1984. "Market Value, R&D, and Patents," NBER Chapters, National Bureau of Economic Research, Inc, in: R & D, Patents, and Productivity, pages 249-252 National Bureau of Economic Research, Inc.
    3. Bronwyn H. Hall & Adam Jaffe & Manuel Trajtenberg, 2005. "Market Value and Patent Citations," RAND Journal of Economics, The RAND Corporation, vol. 36(1), pages 16-38, Spring.
    4. Alberto Galasso & Mark Schankerman, 2010. "Patent thickets, courts, and the market for innovation," RAND Journal of Economics, RAND Corporation, RAND Corporation, vol. 41(3), pages 472-503.
    5. Georg Graevenitz & Stefan Wagner & Dietmar Harhoff, 2013. "Incidence and Growth of Patent Thickets: The Impact of Technological Opportunities and Complexity," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 61(3), pages 521-563, 09.
    6. Carlos J. Serrano, 2010. "The dynamics of the transfer and renewal of patents," RAND Journal of Economics, RAND Corporation, RAND Corporation, vol. 41(4), pages 686-708.
    7. Michele Boldrin & David K Levine, 2012. "The Case Against Patents," Levine's Working Paper Archive 786969000000000465, David K. Levine.
    8. Manuel Trajtenberg, 1990. "A Penny for Your Quotes: Patent Citations and the Value of Innovations," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 172-187, Spring.
    9. Michele Boldrin & David K. Levine, 2012. "The case against patents," Working Papers, Federal Reserve Bank of St. Louis 2012-035, Federal Reserve Bank of St. Louis.
    10. Leonid Kogan & Dimitris Papanikolaou & Amit Seru & Noah Stoffman, 2012. "Technological Innovation, Resource Allocation, and Growth," NBER Working Papers 17769, National Bureau of Economic Research, Inc.
    11. Deepak Hegde & David C. Mowery & Stuart J. H. Graham, 2009. "Pioneering Inventors or Thicket Builders: Which U.S. Firms Use Continuations in Patenting?," Management Science, INFORMS, INFORMS, vol. 55(7), pages 1214-1226, July.
    12. Ariel Pakes, 1986. "Patents as Options: Some Estimates of the Value of Holding European Patent Stocks," NBER Working Papers 1340, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:pen:papers:13-065. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dolly Guarini).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.