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Patent citations indicating present value of the biotechnology business

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Author Info
Tuomo Nikulainen
Raine Hermans
Martti Kulvik

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Abstract

ABSTRACT : Patents form a central pathway for capturing the value of intangible assets in a knowledge-intensive business. Patents can potentially generate and support earnings in two ways : they can be traded or licensed out, and they can provide critical protection for core production technologies or products that are to be traded. Recent patent valuation literature relates backward citations to the basicness of an innovation, and forward citation counts to the economic value of an innovation. In our data covering all Finnish biotechnology patents, we found indications of only the first relation. This might reflect either an excess of a technology-orientated attitude of the companies, or a well-argued value creation mechanism that remains hidden from our research methods. The results imply that a usage of patent citation measures might provide important measures for innovation policies, technology management, and valuation of knowledge-intensive industries.

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Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 1048.

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Length: 21 pages
Date of creation: 26 Oct 2006
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Handle: RePEc:rif:dpaper:1048

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Keywords: patents; patent citations; biotechnology;

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Find related papers by JEL classification:
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics
L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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  1. Technology Assessment
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.:
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    Other versions:
  19. Maria Luisa Mancusi, 2003. "Geographical Concentration And The Dynamics Of Countries' Specialization In Technologies," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 12(3), pages 269-291, January. [Downloadable!] (restricted)
    Other versions:
  20. Jyrki Ali-Yrkkö & Mika Maliranta, 2006. "Impact of R&D on Productivity - Firm-level Evidence from Finland," Discussion Papers 1031, The Research Institute of the Finnish Economy. [Downloadable!]
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    Other versions:
  24. Sami Napari, 2006. "Perhevapaiden palkkavaikutukset: katsaus kirjallisuuteen," Discussion Papers 1044, The Research Institute of the Finnish Economy. [Downloadable!]
  25. Kari Alho, 2006. "Climate Policies and Economic Growth," Discussion Papers 1024, The Research Institute of the Finnish Economy. [Downloadable!]
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  27. Elad Harison & Heli Koski, 2006. "Innovative Software Business Strategies: Evidence from Finnish Firms," Discussion Papers 1042, The Research Institute of the Finnish Economy. [Downloadable!]
  28. Maarit Lindström & Mika Pajarinen, 2006. "The Use of Design in Finnish Manufacturing Firms," Discussion Papers 1017, The Research Institute of the Finnish Economy. [Downloadable!]
  29. Derek C. Jones & Panu Kalmi & Mikko Mäkinen, 2006. "The Productivity Effects of Stock Option Schemes: Evidence from Finnish Panel Data," Discussion Papers 1026, The Research Institute of the Finnish Economy. [Downloadable!]
  30. Alberto Di Minin & Christopher Palmberg, 2006. "A case for non-globalization? The organisation of r&d in the wireless telecommunications industry," Discussion Papers 1047, The Research Institute of the Finnish Economy. [Downloadable!]
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