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Business method patents and U.S. financial services

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  • Robert M. Hunt

Abstract

A decade after the State Street decision, more than 1,000 business method patents are granted each year. Yet only one in ten are obtained by a financial institution. Most business method patents are also software patents. ; Have these patents increased innovation in financial services? To address this question the author constructs new indicators of R&D intensity based on the occupational composition of financial industries. The financial sector appears more research intensive than official statistics would suggest but less than the private economy taken as a whole. There is considerable variation across industries but little apparent trend. There does not appear to be an obvious effect from business method patents on the sector?s research intensity. ; This working paper supersedes Working Paper No. 07-21 and Payment Cards Center Discussion Paper No. 07-10 ; Also issued as Payment Cards Center Discussion Paper No. 08-05

Suggested Citation

  • Robert M. Hunt, 2008. "Business method patents and U.S. financial services," Working Papers 08-10, Federal Reserve Bank of Philadelphia.
    • Handle: RePEc:fip:fedpwp:08-10
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Mari Komulainen & Tuomas Takalo, 2013. "Does State Street Lead to Europe? The Case of Financial Exchange Innovations," European Financial Management, European Financial Management Association, vol. 19(3), pages 521-557, June.
    2. Tamer Khraisha & Keren Arthur, 2018. "Can we have a general theory of financial innovation processes? A conceptual review," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 4(1), pages 1-27, December.
    3. Chattergoon, B. & Kerr, W.R., 2022. "Winner takes all? Tech clusters, population centers, and the spatial transformation of U.S. invention," Research Policy, Elsevier, vol. 51(2).
    4. Bronwyn H. Hall, 2009. "Business And Financial Method Patents, Innovation, And Policy," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(4), pages 443-473, September.
    5. Hyunbae Chun & M. Ishaq Nadiri, 2016. "Intangible Investment and Changing Sources of Growth in Korea," The Japanese Economic Review, Japanese Economic Association, vol. 67(1), pages 50-76, March.
    6. repec:zbw:bofrdp:2009_022 is not listed on IDEAS
    7. Dominic Atogumsekiya Anarigide & Haruna Issahaku & Stanley Kojo Dary, 2023. "Drivers of financial innovation in sub-Saharan Africa," SN Business & Economics, Springer, vol. 3(9), pages 1-21, September.
    8. David Encaoua & Yassine Lefouili, 2009. "Licensing ‘Weak’ Patents," Journal of Industrial Economics, Wiley Blackwell, vol. 57(3), pages 492-525, September.
    9. Mari Komulainen & Tuomas Takalo, 2013. "Does State Street Lead to Europe? The Case of Financial Exchange Innovations," European Financial Management, European Financial Management Association, vol. 19(3), pages 521-557, June.
    10. Awrey, Dan, 2013. "Toward a supply-side theory of financial innovation," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 401-419.
    11. Jiaming Jiang & Rajeev K. Goel & Xingyuan Zhang, 2019. "Knowledge flows from business method software patents: influence of firms’ global social networks," The Journal of Technology Transfer, Springer, vol. 44(4), pages 1070-1096, August.

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    More about this item

    Keywords

    Patents; Financial services industry;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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