How to measure patent thickets – a novel approach

The existing literature identifies patent thickets indirectly. In this paper we propose a novel measure based on patent citations which allows us to measure the density of patent thickets directly. We discuss the algorithm which generates the measure and present descriptive results validating it. Moreover, we identify technology areas which are particularly impacted by patent thickets

Candidate screening for the recruitment of critical research and development workers - a report and preliminary results with evidence from experimental data from German high-tech firms

The report focuses on résumé-based screening strategies for the recruitment of highly qualified research and development (R&D) workers (critical R&D workers) in high-tech firms. We investigate which kinds of professional background, job-related experience, motivations, specific skills, and previous inventive activity make a candidate attractive for firms specializing in clean technology or mechanical elements. The report is based on a combination of survey and experimental data collected from 194 HR decision makers in German high-tech firms and from 89 technology experts in the clean technology and mechanical elements fields. A mixed logit model is used to analyse hiring preferences because this model allows us to deal with repeated choices. We find that HR decision makers prefer candidates with technology-specific patenting experience, an engineering background, analytical thinking skills, and a strong desire to develop path-breaking technologies. Furthermore, no one-size-fits-all candidate exists that is equally preferred in both technology fields. HR decision makers in mechanical element firms prefer specialists to generalists, whereas those in clean technology attach special importance to a candidate’s orientation towards environmental concerns and sustainability

A study of patent thickets

Report analysing whether entry of UK enterprises into patenting in a technology area is affected by patent thickets in the technology area

The Influence of Strategic Patenting on Companies’ Patent Portfolios

This paper analyses whether strategic motives for patenting influence the characteristics of companies’ patent portfolios. We use the number of citations and oppositions to represent these characteristics. The investigation is based on survey and patent data from German companies. We find clear evidence that the companies’ patenting strategies explain the characteristics of their patent portfolios. First, companies using patents to protect their technological knowledge base receive a higher number of citations for their patents. Second, the motive of offensive – but not of defensive – blocking is related to a higher incidence of oppositions, whereas companies using patents as bartering chips in collaborations receive fewer oppositions to their patents

To be financed or not : the role of patents for venture capital financing

This paper investigates how patent applications and grants held by new ventures improve their ability to attract venture capital (VC) financing. We argue that investors are faced with considerable uncertainty and therefore rely on patents as signals when trying to assess the prospects of potential portfolio companies. For a sample of VC-seeking German and British biotechnology companies we have identified all patents filed at the European Patent Office (EPO). Applying hazard rate analysis, we find that in the presence of patent applications, VC financing occurs earlier. Our results also show that VCs pay attention to patent quality, financing those ventures faster which later turn out to have high-quality patents. Patent oppositions increase the likelihood of receiving VC, but ultimate grant decisions do not spur VC financing, presumably because they are anticipated. Our empirical results and interviews with VCs suggest that the process of patenting generates signals which help to overcome the liabilities of newness faced by new ventures

Patente in der europäischen Finanzindustrie: terra incognita?

Die unklare Formulierung des Artikels 52 des Europäischen Patentübereinkommens hat zu einer Unsicherheit bezüglich der Patentierbarkeit von Erfindungen mit finanzwirtschaftlichem Hintergrund am Europäischen Patentamt (EPA) geführt. Der vorliegende Artikel gibt einen Überblick über die geltende Rechtslage in Europa und stellt sie den relevanten Regelungen in den USA gegenüber. In einer empirischen Erhebung werden 1761 Patentanmeldungen am EPA identifiziert, denen eine Erfindung mit finanzwirtschaftlichem Hintergrund zu Grunde liegt. Die Analyse dieser Patente zeigt, dass nur lediglich circa 20 Prozent aller bisher abgeschlossenen Anmeldeverfahren zu einer Patentgewährung geführt haben. Verglichen mit einer durchschnittlichen langfristigen Gewährungsrate von rund 68 Prozent scheint das EPA restriktiv bei der Gewährung von "Finanzpatenten" zu sein. Dieses Ergebnis ist für die Bemühungen um einen neuen regulativen Rahmen zur Vermeidung zukünftiger Finanzmarktkrisen relevant. Eine umfassende Patentierung könnte einer schnellen Verbreitung von aus regulatorischen Gründen gewünschten Methoden im Wege stehen.The imprecise wording of article 52 of the European Patent Convention lead to uncertainty with regard to the patentability of inventions related to financial methods and processes at the European Patent Office (EPO). This article summarizes the relevant legislation in Europe and contrasts it with the legislation in the US. In the empirical part of the paper, 1,761 EPO patent applications based on inventions related to financial methods and processes are identified. The analysis of those patent applications demonstrates that only 20 Prozent of the completed application procedures led to a final patent grant. Compared to an overall grant rate of about 68 Prozent at the EPO this finding highlights that the EPO pursues a restrictive approach towards the award of "financial patents". This finding bears relevance for the future design of a regulatory framework for the financial industry: Widespread patenting could hinder fast diffusion of financial innovation and hamper regulators' efforts to implement them

Community evolution in patent networks: technological change and network dynamics

When studying patent data as a way to understand innovation and technological change, the conventional indicators might fall short, and categorizing technologies based on the existing classification systems used by patent authorities could cause inaccuracy and misclassification, as shown in literature. Gao et al. (International Workshop on Complex Networks and their Applications, 2017) have established a method to analyze patent classes of similar technologies as network communities. In this paper, we adopt the stabilized Louvain method for network community detection to improve consistency and stability. Incorporating the overlapping community mapping algorithm, we also develop a new method to identify the central nodes based on the temporal evolution of the network structure and track the changes of communities over time. A case study of Germany’s patent data is used to demonstrate and verify the application of the method and the results. Compared to the non-network metrics and conventional network measures, we offer a heuristic approach with a dynamic view and more stable results

Community evolution in patent networks: technological change and network dynamics

When studying patent data as a way to understand innovation and technological change, the conventional indicators might fall short, and categorizing technologies based on the existing classification systems used by patent authorities could cause inaccuracy and misclassification, as shown in literature. Gao et al. (International Workshop on Complex Networks and their Applications, 2017) have established a method to analyze patent classes of similar technologies as network communities. In this paper, we adopt the stabilized Louvain method for network community detection to improve consistency and stability. Incorporating the overlapping community mapping algorithm, we also develop a new method to identify the central nodes based on the temporal evolution of the network structure and track the changes of communities over time. A case study of Germany’s patent data is used to demonstrate and verify the application of the method and the results. Compared to the non-network metrics and conventional network measures, we offer a heuristic approach with a dynamic view and more stable results

International patent families: from application strategies to statistical indicators

This paper provides an in-depth analysis of the characteristics of international patent families, including their domestic component. We exploit a relatively under-studied feature of patent families, namely the number of patents covering the same invention within a given jurisdiction. Using this information, we highlight common patterns in the structure of international patent families, which reflect both the patenting strategies of innovators and the peculiarities of the different patent systems. While the literature has extensively used family size, i.e. the number of countries in which a given invention is protected, as a measure of patent value, our results suggest that the number of patent filings in the priority country within a patent family as well as the timespan between the first and last fillings within a family are other insightful indicators of the value of patented innovations

Apprenticeship Training in Germany – Investment or Productivity Driven?

The German dual apprenticeship system came under pressure in recent years because enterprises were not willing to offer a sufficient number of apprenticeship positions. A frequently made argument is that the gap could be closed if more firms would be willing to incur net costs during the training period. This paper investigates for the first time whether German enterprises on average indeed incur net costs during the apprenticeship period, i.e. if the impact of an increase in the share of apprentices on contemporary profits is negative. The paper uses the representative linked employer-employee panel data of the IAB (LIAB) and takes into account possible endogeneity of training intensity and unobserved heterogeneity in the profit estimation by employing panel system GMM methods. An increase in the share of apprentices has no effect on profits. This can be interpreted as a first indication that most establishments in Germany do not invest more in apprentices than their productivity effects during the apprenticeship period