IDEAS home Printed from https://ideas.repec.org/p/alj/wpaper/13-2021.html
   My bibliography  Save this paper

Identification of “Valuable” Technologies via Patent Statistics in India: An Analysis Based on Renewal Information

Author

Listed:
  • Mohd Shadab Danish

    (BASE University, Bengaluru)

  • Pritam Ranjan

    (IIM Indore)

  • Ruchi Sharma

    (IIM Indore)

Abstract

This study assesses the degree to which the patent attributes can capture the value of patents across discrete and complex innovations. We use the patents applied between 1995 to 2002 and granted on or before December 2018 from the Indian Patent Office. Here the patent renewal information is utilized as a proxy for the patent value. We have used generalized logistic regression model for the impact assessment analysis. The results reveal that the technology classification (i.e., discrete versus complex innovations) play an important role in patent value assessment, and some technologies are significantly different than the others even within the two broader classifications. Moreover, the non-resident patents in India are more likely to have a higher value than the resident patents. The significance pattern among the technological fields suggests that the patenting laws need to be revisited to enhance the efficiency.

Suggested Citation

  • Mohd Shadab Danish & Pritam Ranjan & Ruchi Sharma, 2021. "Identification of “Valuable” Technologies via Patent Statistics in India: An Analysis Based on Renewal Information," BASE University Working Papers 13/2021, BASE University, Bengaluru, India.
  • Handle: RePEc:alj:wpaper:13/2021
    as

    Download full text from publisher

    File URL: http://base.ac.in/wp-content/uploads/2021/11/BASE-University-WP-Series-13-2021.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lanjouw, Jean O & Schankerman, Mark, 2001. "Characteristics of Patent Litigation: A Window on Competition," RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 129-151, Spring.
    2. Bronwyn H. Hall & Adam B. Jaffe & Manuel Trajtenberg, 2000. "Market Value and Patent Citations: A First Look," NBER Working Papers 7741, National Bureau of Economic Research, Inc.
    3. Ming-Cheng Wu & Chun-Yao Tseng, 2006. "Valuation of patent - a real options perspective," Applied Economics Letters, Taylor & Francis Journals, vol. 13(5), pages 313-318.
    4. Nicolas van Zeebroeck, 2011. "The puzzle of patent value indicators," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(1), pages 33-62.
    5. Edward F. Sherry & David J. Teece, 2008. "Royalties, evolving patent rights, and the value of innovation," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 8, pages 151-163, World Scientific Publishing Co. Pte. Ltd..
    6. Roberto S. Vassolo & Jaideep Anand & Timothy B. Folta, 2004. "Non‐additivity in portfolios of exploration activities: a real options‐based analysis of equity alliances in biotechnology," Strategic Management Journal, Wiley Blackwell, vol. 25(11), pages 1045-1061, November.
    7. repec:bla:jindec:v:46:y:1998:i:4:p:405-32 is not listed on IDEAS
    8. Drivas, Kyriakos & Kaplanis, Ioannis, 2020. "The role of international collaborations in securing the patent grant," Journal of Informetrics, Elsevier, vol. 14(4).
    9. Carlos J. Serrano, 2011. "Estimating the Gains from Trade in the Market for Innovation: Evidence from the Transfer of Patents," NBER Working Papers 17304, National Bureau of Economic Research, Inc.
    10. Natarajan Balasubramanian & Jagadeesh Sivadasan, 2011. "What Happens When Firms Patent? New Evidence from U.S. Economic Census Data," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 126-146, February.
    11. Bronwyn H. Hall & Grid Thoma & Salvatore Torrisi, 2006. "The market value of patents and R&D: Evidence from European firms," KITeS Working Papers 186, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Nov 2006.
    12. Peter Neuhäusler & Rainer Frietsch, 2013. "Patent families as macro level patent value indicators: applying weights to account for market differences," Scientometrics, Springer;Akadémiai Kiadó, vol. 96(1), pages 27-49, July.
    13. 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.
    14. Bronwyn H. Hall & Adam B. Jaffe & Manuel Trajtenberg, 2001. "The NBER Patent Citation Data File: Lessons, Insights and Methodological Tools," NBER Working Papers 8498, National Bureau of Economic Research, Inc.
    15. Schettino, Francesco & Sterlacchini, Alessandro & Venturini, Francesco, 2013. "Inventive productivity and patent quality: Evidence from Italian inventors," Journal of Policy Modeling, Elsevier, vol. 35(6), pages 1043-1056.
    16. Schankerman, Mark & Pakes, Ariel, 1986. "Estimates of the Value of Patent Rights in European Countries during the Post-1950 Period," Economic Journal, Royal Economic Society, vol. 96(384), pages 1052-1076, December.
    17. Kingston, William, 2001. "Innovation needs patents reform," Research Policy, Elsevier, vol. 30(3), pages 403-423, March.
    18. Jean O. Lanjouw & Mark Schankerman, 1999. "The Quality of Ideas: Measuring Innovation with Multiple Indicators," NBER Working Papers 7345, National Bureau of Economic Research, Inc.
    19. James Bessen & Eric Maskin, 2009. "Sequential innovation, patents, and imitation," RAND Journal of Economics, RAND Corporation, vol. 40(4), pages 611-635, December.
    20. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
    21. Grimaldi, Michele & Cricelli, Livio & Di Giovanni, Martina & Rogo, Francesco, 2015. "The patent portfolio value analysis: A new framework to leverage patent information for strategic technology planning," Technological Forecasting and Social Change, Elsevier, vol. 94(C), pages 286-302.
    22. Simon Kuznets, 1962. "Inventive Activity: Problems of Definition and Measurement," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 19-52, National Bureau of Economic Research, Inc.
    23. Ernst, Holger, 2001. "Patent applications and subsequent changes of performance: evidence from time-series cross-section analyses on the firm level," Research Policy, Elsevier, vol. 30(1), pages 143-157, January.
    24. Arora, Ashish & Ceccagnoli, Marco & Cohen, Wesley M., 2008. "R&D and the patent premium," International Journal of Industrial Organization, Elsevier, vol. 26(5), pages 1153-1179, September.
    25. Norman Carte, 2005. "The Maximum Achievable Profit Method Of Patent Valuation," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 135-151.
    26. Hsieh, Chih-Hung, 2013. "Patent value assessment and commercialization strategy," Technological Forecasting and Social Change, Elsevier, vol. 80(2), pages 307-319.
    27. Wartburg, Iwan von & Teichert, Thorsten, 2008. "Valuing patents and licenses from a business strategy perspective - Extending valuation considerations using the case of nanotechnology," World Patent Information, Elsevier, vol. 30(2), pages 106-114, June.
    28. Marco, Alan C., 2005. "The option value of patent litigation: Theory and evidence," Review of Financial Economics, Elsevier, vol. 14(3-4), pages 323-351.
    29. Jerry Hausman & Gregory K. Leonard, 2006. "Real Options And Patent Damages: The Legal Treatment Of Non‐Infringing Alternatives, And Incentives To Innovate," Journal of Economic Surveys, Wiley Blackwell, vol. 20(4), pages 493-512, September.
    30. Christos Agiakloglou & Kyriakos Drivas & Dimitris Karamanis, 2016. "Individual inventors and market potentials: Evidence from US patents," Science and Public Policy, Oxford University Press, vol. 43(2), pages 147-156.
    31. Bessen, James, 2008. "The value of U.S. patents by owner and patent characteristics," Research Policy, Elsevier, vol. 37(5), pages 932-945, June.
    32. Jean O. Lanjouw & Ariel Pakes & Jonathan Putnam, 1998. "How to Count Patents and Value Intellectual Property: The Uses of Patent Renewal and Application Data," Journal of Industrial Economics, Wiley Blackwell, vol. 46(4), pages 405-432, December.
    33. Caviggioli, Federico & Scellato, Giuseppe & Ughetto, Elisa, 2013. "International patent disputes: Evidence from oppositions at the European Patent Office," Research Policy, Elsevier, vol. 42(9), pages 1634-1646.
    34. 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.
    35. Deng, Yi, 2007. "Private value of European patents," European Economic Review, Elsevier, vol. 51(7), pages 1785-1812, October.
    36. Raffaele Oriani & Maurizio Sobrero, 2008. "Uncertainty and the market valuation of R&D within a real options logic," Strategic Management Journal, Wiley Blackwell, vol. 29(4), pages 343-361, April.
    37. Lai, Kuei-Kuei & Bhatt, Priyanka C. & Kumar, Vimal & Chen, Hsueh-Chen & Chang, Yu-Hsin & Su, Fang-Pei, 2021. "Identifying the impact of patent family on the patent trajectory: A case of thin film solar cells technological trajectories," Journal of Informetrics, Elsevier, vol. 15(2).
    38. Evangelia Chalioti & Kyriakos Drivas & Sarantis Kalyvitis & Margarita Katsimi, 2020. "Innovation, patents and trade: A firm‐level analysis," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(3), pages 949-981, August.
    39. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    40. Reitzig, Markus, 2004. "Improving patent valuations for management purposes--validating new indicators by analyzing application rationales," Research Policy, Elsevier, vol. 33(6-7), pages 939-957, September.
    41. Nalin Kulatilaka & Alan J. Marcus, 1992. "Project Valuation Under Uncertainty: When Does Dcf Fail?," Journal of Applied Corporate Finance, Morgan Stanley, vol. 5(3), pages 92-100, September.
    42. Tong, Xuesong & Frame, J. Davidson, 1994. "Measuring national technological performance with patent claims data," Research Policy, Elsevier, vol. 23(2), pages 133-141, March.
    43. Nicky J. Welton & Howard H. Z. Thom, 2015. "Value of Information," Medical Decision Making, , vol. 35(5), pages 564-566, July.
    44. Yu-Hsin Chang & Kuei-Kuei Lai & Chien-Yu Lin & Fang-Pei Su & Ming-Chung Yang, 2017. "A hybrid clustering approach to identify network positions and roles through social network and multivariate analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 113(3), pages 1733-1755, December.
    45. James Bessen, 2004. "Patent Thickets: Strategic Patenting of Complex Technologies," Working Papers 0401, Research on Innovation.
    46. repec:ipg:wpaper:2014-367 is not listed on IDEAS
    47. Hikkerova, Lubica & Kammoun, Niaz & Lantz, Jean-Sébastien, 2014. "Patent life cycle: New evidence," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 313-324.
    48. 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.
    49. Richard Williams, 2006. "Generalized ordered logit/partial proportional odds models for ordinal dependent variables," Stata Journal, StataCorp LP, vol. 6(1), pages 58-82, March.
    50. Arora, Ashish & Fosfuri, Andrea & Gambardella, Alfonso, 2001. "Markets for Technology and Their Implications for Corporate Strategy," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(2), pages 419-451, June.
    51. Ariel Pakes & Mark Schankerman, 1984. "The Rate of Obsolescence of Patents, Research Gestation Lags, and the Private Rate of Return to Research Resources," NBER Chapters, in: R&D, Patents, and Productivity, pages 73-88, National Bureau of Economic Research, Inc.
    52. Machado, Matilde P., 2004. "A consistent estimator for the binomial distribution in the presence of "incidental parameters": an application to patent data," Journal of Econometrics, Elsevier, vol. 119(1), pages 73-98, March.
    53. Jee, Su Jung & Kwon, Minji & Ha, Jung Moon & Sohn, So Young, 2019. "Exploring the forward citation patterns of patents based on the evolution of technology fields," Journal of Informetrics, Elsevier, vol. 13(4).
    54. Jean O. Lanjouw & Mark Schankerman, 2004. "Patent Quality and Research Productivity: Measuring Innovation with Multiple Indicators," Economic Journal, Royal Economic Society, vol. 114(495), pages 441-465, April.
    55. Francois P. Kabore & Walter G. Park, 2019. "Can patent family size and composition signal patent value?," Applied Economics, Taylor & Francis Journals, vol. 51(60), pages 6476-6496, December.
    56. Luigi Orsenigo & Valerio Sterzi, 2010. "Comparative Study of the Use of Patents in Different Industries," KITeS Working Papers 033, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised 2010.
    57. 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.
    58. Mariagrazia Squicciarini & Hélène Dernis & Chiara Criscuolo, 2013. "Measuring Patent Quality: Indicators of Technological and Economic Value," OECD Science, Technology and Industry Working Papers 2013/3, OECD Publishing.
    59. Meng, Rujing, 2008. "A patent race in a real options setting: Investment strategy, valuation, CAPM beta, and return volatility," Journal of Economic Dynamics and Control, Elsevier, vol. 32(10), pages 3192-3217, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohd Shadab Danish & Pritam Ranjan & Ruchi Sharma, 2022. "Assessing the Impact of Patent Attributes on the Value of Discrete and Complex Innovations," Papers 2208.07222, arXiv.org.
    2. Antoine Dechezleprêtre & Yann Ménière & Myra Mohnen, 2017. "International patent families: from application strategies to statistical indicators," Scientometrics, Springer;Akadémiai Kiadó, vol. 111(2), pages 793-828, May.
    3. Appio, Francesco Paolo & Baglieri, Daniela & Cesaroni, Fabrizio & Spicuzza, Lucia & Donato, Alessia, 2022. "Patent design strategies: Empirical evidence from European patents," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    4. Antonio Messeni Petruzzelli & Daniele Rotolo & Vito Albino, 2014. "Determinants of Patent Citations in Biotechnology: An Analysis of Patent Influence Across the Industrial and Organizational Boundaries," SPRU Working Paper Series 2014-05, SPRU - Science Policy Research Unit, University of Sussex Business School.
    5. Leila Tahmooresnejad & Catherine Beaudry, 2018. "Do patents of academic funded researchers enjoy a longer life? A study of patent renewal decisions," PLOS ONE, Public Library of Science, vol. 13(8), pages 1-22, August.
    6. Leila Tahmooresnejad & Catherine Beaudry, 2019. "Capturing the economic value of triadic patents," Scientometrics, Springer;Akadémiai Kiadó, vol. 118(1), pages 127-157, January.
    7. Nicolas van Zeebroeck, 2009. "From patent renewals to applications survival: do portfolio management strategies play a role in patent length?," Working Papers CEB 09-028.RS, ULB -- Universite Libre de Bruxelles.
    8. Huang, Kenneth Guang-Lih & Huang, Can & Shen, Huijun & Mao, Hao, 2021. "Assessing the value of China's patented inventions," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    9. Bessen, James, 2008. "The value of U.S. patents by owner and patent characteristics," Research Policy, Elsevier, vol. 37(5), pages 932-945, June.
    10. Nicolas van Zeebroeck, 2011. "The puzzle of patent value indicators," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(1), pages 33-62.
    11. Higham, Kyle & de Rassenfosse, Gaétan & Jaffe, Adam B., 2021. "Patent Quality: Towards a Systematic Framework for Analysis and Measurement," Research Policy, Elsevier, vol. 50(4).
    12. Grimaldi, Michele & Cricelli, Livio & Di Giovanni, Martina & Rogo, Francesco, 2015. "The patent portfolio value analysis: A new framework to leverage patent information for strategic technology planning," Technological Forecasting and Social Change, Elsevier, vol. 94(C), pages 286-302.
    13. Federico Munari & Maurizio Sobrero, 2011. "Economic and Management Perspectives on the Value of Patents," Chapters, in: Federico Munari & Raffaele Oriani (ed.), The Economic Valuation of Patents, chapter 3, Edward Elgar Publishing.
    14. Yang, Guancan & Lu, Guoxuan & Xu, Shuo & Chen, Liang & Wen, Yuxin, 2023. "Which type of dynamic indicators should be preferred to predict patent commercial potential?," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    15. Gupeng, Zhang & Xiangdong, Chen, 2012. "The value of invention patents in China: Country origin and technology field differences," China Economic Review, Elsevier, vol. 23(2), pages 357-370.
    16. Nicolas van Zeebroeck, 2007. "Patents only live twice: a patent survival analysis in Europe," Working Papers CEB 07-028.RS, ULB -- Universite Libre de Bruxelles.
    17. Chandra, Praveena & Dong, Andy, 2018. "The relation between knowledge accumulation and technical value in interdisciplinary technologies," Technological Forecasting and Social Change, Elsevier, vol. 128(C), pages 235-244.
    18. Justus Baron & Henry Delcamp, 2012. "The private and social value of patents in discrete and cumulative innovation," Scientometrics, Springer;Akadémiai Kiadó, vol. 90(2), pages 581-606, February.
    19. Manuel Acosta & Daniel Coronado & Esther Ferrándiz & Manuel Jiménez, 2022. "Effects of knowledge spillovers between competitors on patent quality: what patent citations reveal about a global duopoly," The Journal of Technology Transfer, Springer, vol. 47(5), pages 1451-1487, October.
    20. Nicolas van Zeebroeck & Bruno van Pottelsberghe de la Potterie, 2011. "Filing strategies and patent value," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(6), pages 539-561, February.

    More about this item

    Keywords

    Patent value; Discrete innovation; Complex innovation; Patent reform; Renewal information Classification-O31; O32; O34;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:alj:wpaper:13/2021. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Indrani (email available below). General contact details of provider: https://edirc.repec.org/data/basebin.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.