1

Patent analysis

Presenter: Huang Ming-Chao

Date: 06/25/2008

2

Highlight of Patent analysis

The content of patent dataInventorAssigneeApplication/issued dateIPC/UPCReference/citation

The unit of analysisFirm-year level (cross-section & time series)Patent levelFirm level

3

The content of patent data

Backward citationBackward citation

IPCUPC

4

Content

Patent AnalysisFirm-year level: Rosenkopf and Nerkar (SMJ, 2001)Firm level: Sampson (AMJ, 2007)Patent level: Millar, Fern & Cardinal (AMJ, 2007)Patent level: Phene, Fladmoe-Lindquist and Marsh (SMJ,

2006)

Patent-based performanceImpact (backward citation)Breakthrough innovationPatent spellFollow-on patenting

5

Patent analysis:Firm-year level

6

Rosenkopf and Nerkar (SMJ, 2001)

Industry: optical disk industryFramework

Technological domainTechnological domain(Within or beyond)

Technological domainTechnological domain(Within or beyond)

Firm domainFirm domain(Within or beyond)

Firm domainFirm domain(Within or beyond)

ImpactImpact(domain or overall)(domain or overall)

ImpactImpact(domain or overall)(domain or overall)

Organizational boundaryOrganizational boundary

Technological boundary

Technological boundary

7

Rosenkopf and Nerkar (SMJ, 2001)

Framework

Firm Firm domaindomain

TechnologicalTechnologicaldomaindomain

Firm-yearFirm-yearPatent citationsPatent citations

DomainDomainImpactImpact

OverallOverallImpactImpact

Backward citation Forward citation

•Time frame: 1971-1995Time frame: 1971-1995

•USPTO databaseUSPTO database

•22 firms22 firms

•2,333 patents2,333 patents

•371 firm-year observations371 firm-year observations

•Dependent variable: patent Dependent variable: patent count (exclude self-citation)count (exclude self-citation)

•Negative binomial regressionNegative binomial regression

•Time frame: 1971-1995Time frame: 1971-1995

•USPTO databaseUSPTO database

•22 firms22 firms

•2,333 patents2,333 patents

•371 firm-year observations371 firm-year observations

•Dependent variable: patent Dependent variable: patent count (exclude self-citation)count (exclude self-citation)

•Negative binomial regressionNegative binomial regression

8

Patent analysis:Firm level

9

Sampson (AMJ, 2007)

Industry: telecommunication equipment industry (SIC classes-3661, 3663 and 3669)

Alliance type: bilateral contract and equity joint venture.

Data SDC MicroPatent

Time frame: 1991-1993 463 R&D alliances, 487 firms, 1,005 observations. Negative binomial regression

Technological diversityTechnological diversity

Alliance typeAlliance type

Innovation performanceInnovation performance

Inverse U U

10

Sampson (AMJ, 2007)

Technological diversity

Dependent variablePost-alliance patents innovative performance via

a count of citation-weighted firm patents in a 4-year post-alliance window,

11

Patent analysis:Patent level

12

Phene, Fladmoe-Lindquist and Marsh (SMJ, 2006)

Industry: biotechnology industry

Knowledge sourcing Technological space and

geographic originTheory or perspective

Organizational learning Absorptive capacity

Data Bioscan

87 firms, 707 patents, 5988 backward citations, 4117 forward citations

Technological ProximateProximateknowledge

Technological distantdistant

knowledge

707707 focal patentsFiled in 19881988 by 8787 firms

5,9885,988 backward citation patents

4,1174,117 forward citation patents

13

Patent analysis:Patent level

14

Millar, Fern & Cardinal (AMJ, 2007)

Knowledge sourcing (boundary of firm and its divisions) Intra-divisional knowledge sourcing negatively affects forward citation Extra-organizational citation (positive effect) Inter-divisional citation (positive effect)

Data NBER (National Bureau of Economic Research Patent Citations Data

File) MicroPatent Corporation

Time frame: 1985-1996 1,644 firms 211,636 patents (observations) Unit of analysis: patent Negative binomial regression

15

Patent-based innovation performance-Patent count

ImpactImpactRosenkopf and Nerkar (2001)

Domain impact equals the number of citations from optical disk optical disk patentspatents (that is, citing patents that were classified in any of our initial optical disk subclasses) received by firm i’s patents granted in year t.

Overall impact is the total number of citations from non-optical non-optical disk patentsdisk patents received by firm i’s patents granted in year t.

Breakthrough innovationBreakthrough innovationPhene, Fladmoe-Lindquist and Marsh (2006)

Forward citations, excluding self-citations. Every original patent has an equal 10-year time window for

citations. (citations received) Top 2 percent of the sample (15 original patents out of the total

of 707 patents) were identified as breakthrough innovations.

16

Patent-based innovation performance-Persistent innovation

Patent spellPatent spellAlfranca, Rama and von Tunzelmann (Technovation,

2004)patent spells as periods of time during which the

company innovates year after year without gaps in its activity.

Follow-on patentingFollow-on patentingMcGrath and Nerkar (SMJ, 2004)Taking out a second patent in a patent subclass that is

new to the firm ( it has only one previous patent in a new technological areas that it had not patented in before).