Citation Frequency and the Value of Patented Innovation

Through a survey, economic value estimates were obtained on 962 inventions made in the United States and Germany and on which German patent renewal fees were paid to full-term expiration in 1995. A search of subsequent U.S. and German patents yielded a count of citations to those patents. Patents renewed to full term were significantly more valuable than patents allowed to expire before their full term. The higher an invention?s economic value estimate was, the more the relevant patent was subsequently cited. --Innovation,Patent,Citation,Count data model

Citation Frequency and the Value of Patented Innovation

Through a survey, economic value estimates were obtained on 962 inventions made in the United States and Germany and on which German patent renewal fees were paid to full-term expiration in 1995. A search of subsequent U.S. and German patents yielded a count of citations to those patents. Patents renewed to full term were significantly more valuable than patents allowed to expire before their full term. The higher an invention's economic value estimate was, the more the relevant patent was subsequently cited. results from two wide-ranging surveys, one in Germany and one in the United States, support Trajtenberg's conclusion that patents with greater economic value are more heavily cited in subsequent patents. Our evidence suggests at least a two-stage escalation of economic values and citation counts. First, patents that are renewed to full term expiration in environments such as Germany with highly progressive annual maintenance fees are more valuable and more highly cited than run-of-the-mill patents allowed to expire before running to full term. Second, within the relatively exclusive cohort of fullterm patents, citation frequency rises with economic value, although with considerable noise in the relationship. The most cited patents turn out to be very valuable indeed, with a single U.S. citation implying on average more than $1 million of economic value. These findings provide new support for research seeking to overcome the limitations of simple patent counts as a measure of innovative contribution by acquiring data on citation frequencies and the number of nations in which patent protection is sought. ZUSAMMENFASSUNG - (Zitationenzahl und der Wert der Patent-Innovation) Durch eine Unternehmensbefragung wurde der Wert von 962 Patenten von US-amerikanischen und deutschen Anmeldern ermittelt, die den Patentschutz durch Zahlung der Verlängerungsgebühren von 1977 bis 1995 in Deutschland aufrechterhalten hatten. Außerdem wurde für diese Patente die Zahl der Zitationen (Bezugnahmen in späteren Patenten) ermittelt. Die bis zur gesetzlichen Laufzeit aufrechterhaltenen Patente wiesen eine signifikant höhere Zahl von Zitationen auf als Patente, die nicht verlängert worden waren. Zwischen der Zahl der Zitationen und dem Wert eines Patentes gibt es einen statistisch signifikanten Zusammenhang, der in dieser Studie näher beschrieben wird.innovation; patent; citation; count data model

Exploring the Tail of Patented Invention Value Distributions

We explore the tail of patented invention value distributions by using value estimates obtained directly from patent holders. The paper focuses on those full-term German patents of the application year 1977 which were held by West German and U.S. residents. The most valuable patents in our data account for a large fraction of the cumulative value over all observations. Several tests are conducted to pin down more precisely the nature of the high-value tail distribution. Among the Pareto, Singh-Maddala and log normal distributions, the log normal appears to provide the best fit to our patented invention value data. --Patents,Skew Distributions

Citation Frequency and the Value of Patented Innovation

Through a survey, economic value estimates were obtained on 962 inventions made in the United States and Germany and on which German patent renewal fees were paid to full-term expiration in 1995. A search of subsequent U.S. and German patents yielded a count of citations to those patents. Patents renewed to full term were significantly more valuable than patents allowed to expire before their full term. The higher an invention's economic value estimate was, the more the relevant patent was subsequently cited

Exploring the Tail of Patented Invention Value Distributions

We explore the tail of patented invention value distributions by using value estimates obtained directly from patent holders. The paper focuses on those full-term German patents of the application year 1977 which were held by West German and U.S. residents. The most valuable patents in our data account for a large fraction of the cumulative value over all observations. Several tests are conducted to pin down more precisely the nature of the high-value tail distribution. Among the Pareto, Singh-Maddala and log normal distributions, the log normal appears to provide the best fit to our patented invention value data

The Validity of Studies with Line of Business Data: Comment

In the March 1985 issue of this Review, George Benston found fault with Federal Trade Commission Line of Business (LB) data generally and singled out for extended criticism thirteen LB data-based papers written by the authors of this comment. Even by the pre-Queensberry rules governing eco- nomic disputation, Benston\u27s article is one- sided and negative. Moreover, it is marred by numerous errors in characterizing our work. We wish to set the record straight

Persistence of Monopoly and Research Specialization

We examine the persistence of monopolies in markets with innovations when the outcome of research is uncertain. We show that for low success probabilities of research, the incumbent can seldom preempt the potential entrant. Then the efficiency effect outweighs the replacement effect. It is vice versa for high probabilities. Moreover, the incumbent specializes in safe research and the potential entrant in risky research. We also show that the probability of entry has an inverted U-shape in the success probability. Since even at the peak entry is rather unlikely, the persistence of the monopoly is high

Synergies between interstellar dust and heliospheric science with an Interstellar Probe

We discuss the synergies between heliospheric and dust science, the open science questions, the technological endeavors and programmatic aspects that are important to maintain or develop in the decade to come. In particular, we illustrate how we can use interstellar dust in the solar system as a tracer for the (dynamic) heliosphere properties, and emphasize the fairly unexplored, but potentially important science question of the role of cosmic dust in heliospheric and astrospheric physics. We show that an Interstellar Probe mission with a dedicated dust suite would bring unprecedented advances to interstellar dust research, and can also contribute-through measuring dust - to heliospheric science. This can, in particular, be done well if we work in synergy with other missions inside the solar system, thereby using multiple vantage points in space to measure the dust as it `rolls' into the heliosphere. Such synergies between missions inside the solar system and far out are crucial for disentangling the spatially and temporally varying dust flow. Finally, we highlight the relevant instrumentation and its suitability for contributing to finding answers to the research questions.Comment: 18 pages, 7 Figures, 5 Tables. Originally submitted as white paper for the National Academies Decadal Survey for Solar and Space Physics 2024-203

The Impact of Market Size and Users' Sophistication on Innovation: The Patterns of Demand and the Technology Life Cycle

The aim of this paper is an investigation on the role of demand in industrial dynamics. Despite the decades-long debate on demand and innovation, theory still lacks a comprehensive analytical formulation. This paper proposes a model where demand is conceived as a peculiar blend of two conditions, market size, and users sophistication. These conditions drive firms incentives to innovate. As main outcome, the paper proposes both a theoretical taxonomy of sectors and an original explanation of technological life cycle