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Internal sequential innovations: How does interrelatedness affect patent renewal?


  • Liu, Kun
  • Arthurs, Jonathan
  • Cullen, John
  • Alexander, Roger


The value of patented innovations has attracted substantial research attention, especially in the context of patent renewal. However, research often assumes that a firm's patented innovations are independent from each other. We draw upon evolutionary economics and suggest that some of a firm's patents share important genealogical relationships, which we refer to as internal sequential innovations. We propose internal sequential innovations are more valuable and therefore more likely to be renewed than stand-alone innovations. We examine our hypotheses from a dataset of US pharmaceutical and biotechnology patents. The results confirm our hypotheses at both the patent and the firm levels.

Suggested Citation

  • Liu, Kun & Arthurs, Jonathan & Cullen, John & Alexander, Roger, 2008. "Internal sequential innovations: How does interrelatedness affect patent renewal?," Research Policy, Elsevier, vol. 37(5), pages 946-953, June.
  • Handle: RePEc:eee:respol:v:37:y:2008:i:5:p:946-953

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    References listed on IDEAS

    1. Marc Baudry & Béatrice Dumont, 2006. "Patent Renewals as Options: Improving the Mechanism for Weeding Out Lousy Patents," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 28(1), pages 41-62, February.
    2. 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.
    3. Carl Shapiro, 2001. "Navigating the Patent Thicket: Cross Licenses, Patent Pools, and Standard Setting," NBER Chapters,in: Innovation Policy and the Economy, Volume 1, pages 119-150 National Bureau of Economic Research, Inc.
    4. Pakes, Ariel S, 1986. "Patents as Options: Some Estimates of the Value of Holding European Patent Stocks," Econometrica, Econometric Society, vol. 54(4), pages 755-784, July.
    5. James Bessen & Eric Maskin, 2009. "Sequential innovation, patents, and imitation," RAND Journal of Economics, RAND Corporation, vol. 40(4), pages 611-635.
    6. Sharon Belenzon, 2006. "Knowledge Flow and Sequential Innovation: Implications for Technology Diffusion, R&D and Market Value," Economics Series Working Papers 259, University of Oxford, Department of Economics.
    7. Dietmar Harhoff & Francis Narin & F. M. Scherer & Katrin Vopel, 1999. "Citation Frequency And The Value Of Patented Inventions," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 511-515, August.
    8. Harhoff, Dietmar & Scherer, Frederic M. & Vopel, Katrin, 2003. "Citations, family size, opposition and the value of patent rights," Research Policy, Elsevier, vol. 32(8), pages 1343-1363, September.
    9. Reitzig, Markus, 2003. "What determines patent value?: Insights from the semiconductor industry," Research Policy, Elsevier, vol. 32(1), pages 13-26, January.
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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. repec:kap:jtecht:v:42:y:2017:i:3:d:10.1007_s10961-016-9492-5 is not listed on IDEAS
    3. repec:spr:scient:v:90:y:2012:i:2:d:10.1007_s11192-011-0532-5 is not listed on IDEAS
    4. Jinyoung Kim, 2010. "Patent Portfolio Management of Sequential Innovations," Discussion Paper Series 1005, Institute of Economic Research, Korea University.
    5. Jinyoung Kim, 2015. "Patent Portfolio Management of Sequential Innovations: Theory and Empirics," Discussion Paper Series 1504, Institute of Economic Research, Korea University.
    6. Eun Han & So Sohn, 2015. "Patent valuation based on text mining and survival analysis," The Journal of Technology Transfer, Springer, vol. 40(5), pages 821-839, October.
    7. repec:spr:scient:v:112:y:2017:i:3:d:10.1007_s11192-017-2443-6 is not listed on IDEAS
    8. 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.
    9. repec:spr:scient:v:113:y:2017:i:1:d:10.1007_s11192-017-2480-1 is not listed on IDEAS

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