How do latecomers catch up with forerunners? Analysis of patents and patent citations in the field of flat panel display technologies

This paper sets out to explore the patterns of technological change and knowledge spillover in the field of flat panel display (FPD) technology, along with the catching-up behavior of latecomers, through the analysis of US patents and patent citations between 1976 and 2005. Our results show that: (i) the catching-up by FPD technology latecomers began at the transition stage (1987-1996) when the dominant design became established in areas with high ‘revealed technology advantage’ (RTA); (ii) there is no apparent localization of knowledge spillover amongst FPD technology latecomers; instead, higher citation frequencies of forerunners’ patents were found in latecomers’ FPD patents during the transition (1987–1996) and post-dominant design (1997–2005) stages and; and (iii) a few extraordinary peaks were found in the citation frequency of forerunners’ patents at long citation lags in latecomers’ FPD patents, particularly during the transition stage (1987–1996), indicative of the knowledge threshold which latecomers need to cross in order to catch up with forerunners.     

Using neural network to analyze the influence of the patent performance upon the market value of the US pharmaceutical companies

This study applies the artificial neural network technique to explore the influence of quantitative and qualitative patent indicators upon market value of the pharmaceutical companies in US. The results show that Herfindahl-Hirschman Index of patents influences negatively market value of the pharmaceutical companies in US, and their technological independence positively affects their market value. In addition, this study also finds out that patent citations of the American pharmaceutical companies have an inverse U-shaped effect upon their market value.     

Mapping inventive activity and technological change through patent analysis: A case study of India and China

The characteristics of Indian and Chinese patenting activity in the US patent system are examined by delineating two categories of patents; ‘nationally assigned’, and ‘invented not nationally assigned’ patents (not-nationally assigned patents in short). Further within the above two categories, patents are distinguished and analysed in terms of patent types: utility, design, and plant patents. Indian patents are mainly of utility type whereas China's activity falls in both utility and design.In the ‘nationally assigned’ patents, the different types of institutions involved and linkages are much higher for China. However, ‘not-nationally assigned’ patents of both the countries are dominated by industry and inter-institutional collaborations are sparse. Patents addressing technology sectors (analysis based on utility patents) do not exhibit major differences between the two categories in Chinese patents and address with varying degree all technology sectors. Unlike China, India's ‘nationally assigned’ patents are concentrated in chemical and drugs & medical whereas their ‘not-nationally assigned’ patents are similar to that of China in addressing technology sectors. In design patents, Chinese ‘nationally assigned’ patents mainly cover ornamental design of lighting equipments whereas their ‘not-nationally assigned’ patents are mainly in design equipment for production, distribution or transformation of energy. Further, few firms are active in design patents in both the categories. India's design activity is insignificant in both the categories. The paper concludes by examining the results in the policy context. This revised version was published online in June 2006 with corrections to the Cover Date.     

Inventor's Knowledge Set as the Antecedent of Patent Importance

This paper investigates the antecedents of patent importance by looking at the prior knowledge set of academic inventors. Using independent methodologies, we distinguish between the scientific knowledge set and the technical knowledge set, and separate these from other kinds of prior expertise. We find that the patents of the inventors who have a prior scholarly knowledge of the topic are on average more important (more cited after 6 years). Conversely, we find an inverted U-shape relationship between prior technical relatedness and patent importance. These results are potentially useful to support the work of practitioners such as university technology managers, which often face difficulties in identifying the importance and perspective value of the disclosed inventions, amid high market and legal uncertainty and budget shortages.     

Analyzing the nonlinear effects of firm size,profitability, and employee productivity on patent citations of the US pharmaceutical companies by using artificial neural network

This study utilizes neural network to explore the nonlinear relationships between corporate performance and the patent traits measured from Herfindahl-Hirschman Index of patents (HHI of patents), patent citations, and relative patent position in the most important technological field (RPP_MIT) in the US pharmaceutical industry. The results show that HHI of patents and RPP_MIT have nonlinearly and monotonically positive influences upon corporate performance, while the influence of patent citations is nonlinearly U-shaped. Therefore, pharmaceutical companies should raise the degrees of the leading position in their most important technological fields and the centralization of their technological capabilities to enhance corporate performance.     

Industry evolution and key technologies in China based on patent analysis

Patents are the manifestation of the industry’s research and development (R&D) endeavor; therefore, this paper studies the industry evolution of and key technologies in China from the perspective of patent analysis. Patents in six types of industries, including Chemical (excluding Drugs), Computers and Communications, Drugs and Medical, Electrical and Electronics (E&E), Mechanical, and Others are analyzed in this study. Findings from the analysis show a steady increase of US granted utility patents in China as well as percentage of these patents in the world over the period between 2003 and 2008. All the above industries in China have been growing rapidly during this period, which is very different from the global industry development. Despite the rapid development, the citation rates of these patents have been low, reflecting a need for improvement in the quality of patents and R&D performance for these six industries in China in order to exert more influence in the industry world. The analysis on patents also reveals China’s industry distribution to be similar to the global industry distribution, with the exception of E&E industry which weights over one third of the total patents in technologies. The E&E industry is also the field with largest economic growth which rises more rapidly after 2006 with a sudden increase of patents in USPC 361. Detailed tracking of the key technology evolution reveals that 90% of the newly issued patents in USPC 361 after 2006 are owned by Foxconn Technology Co., Ltd, pointing to an unbalanced R&D environment in China’s E&E industry sector. By providing the insight into the evolution of China’s industrial and technological development through the perspective of patent analysis, this paper hopes to provide an objective statistic reference for future policy directions and academic researches.     

Innovative Output,Productivity and Profitability. A Test Comparing USPTO and EPO Data

The aim of this paper is to test whether patent‐based indicators are still reliable measures of innovativeness in light of organizational changes in the field of Intellectual Property Rights (IPR) protection and the regulatory reforms already occurred and under way, respectively, at the US Patent and Trademark Office (USPTO) and the European Patent Office (EPO). For most high‐tech industries, patents represent an outcome of the production process and their number can be taken as a proxy for a firm's ability to improve its productivity growth and profitability. The case study reported here concerns the biotechnology industry in Italy, whose firms, by definition, have Intellectual Property (IP) activities in their portfolios. For this purpose, we use a unique dataset which collects balance sheet items and patent information from EPO and USPTO. After linking firms' financial and production data with the patent information, we estimate a modified knowledge production function in which the dependent variable is alternatively (labor) productivity growth and profitability. Although based on a quite small sample, our findings provide some indication of a statistically significant relationship between patents with the EPO and both productivity growth and, in particular, profitability. This suggests that firms might pursue different strategies when patenting with the USPTO and the EPO.     

Significant difference of dependence upon scientific knowledge among different technologies

Summary The authors have constructed an original database of the full text of the Japanese Patent Gazette published since 1994. The database includes not only the front page but also the body text of more than 880,000 granted Japanese patents. By reading the full texts of all 1,500 patent samples, we found that some inventors cite many academic papers in addition to earlier patents in the body texts of their Japanese patents. Using manually extracted academic paper citations and patent citations as “right” answers, we fine-tuned a search algorithm that automatically retrieves cited scientific papers and patents from the entire texts of all the Japanese patents in the database. An academic paper citation in a patent text indicates that the inventor used scientific knowledge in the cited paper when he/she invented the idea codified in the citing patent. The degree of science linkage, as measured by the number of research papers cited in patent documents, is particularly strong in biotechnology. Among other types of technology, those related to photographic-sensitized material, cryptography, optical computing, and speech recognition also show strong science linkage. This suggests that the degree of dependence on scientific knowledge differs from technology to technology and therefore, different ways of university-industry collaboration are necessary for different technology fields.     

The public science base of US biotechnology: A citation-weighted approach

In previous research we examined the science base of US biotechnology utilizing several unique patent and scientific paper databases (McMillan et al., 2000). Our findings highlighted the importance of public science in this industry. In this current research effort, we extend that analysis to include the subsequent citations those biotechnology patents received. Our conclusions are that the reliance on public science is stable when adjusted for forward citations, but the impact of different funding sources does change when citation weights are added. The science policy implications of these findings and future research opportunities are discussed.     

Patent Statistics as Indicators of Competition an Analysis of Patenting in Biotechnology

Numbers of patents cannot indicate the state of research or the contents of patent documentation cannot indicate the true technological features achieved. Patent statistics though so used, is not a good indicator of the economic returns to investments in research. Use of this statistics for understanding the degree of competition and the competition-driven research strategy is attractive. A patent document is part of the public knowledge in such a way as to restrict the growth of the future public knowledge. This portent on the future content of research and on the number and areas of research, by a current application is a competition-defining aspect. This effect on the lagged future applications and accepting patent disclosure as an intentional strategic data — are the most significant characteristics of patent statistics. The present paper applied this understanding, and generated a number of indices derived from data bases on patenting. These are indicators on Competition, Technology Pool, Language Technology Pool, Modified Competition, Market Attractiveness and on the Strength of Patent Market. Values of these indicators for biotechnological research and for several countries have been derived as example.     

Triadic citations,country biases and patent value: the case of pharmaceuticals

Triadic patents minimise home bias effects in studies that focus on patent counts as a measure of innovative activity. Yet, biases in qualitative patent indicators have been largely neglected. This article advocates that forward patent citations, and triadic citations in particular, can illuminate further on home bias, self citations, and the speed of knowledge flows for drug patents published by the USPTO for the period 1980–2008. The evidence shows that triadic citations help to minimize the home bias in citations as well as to make patent quality more transparent. Also, it indicates that self citations and the age distribution of citations are important factors to consider when explaining cross-country differences in pharmaceutical citations.     

Developing technology in the vicinity of science: An examination of the relationship between science intensity (of patents) and technological productivity within the field of biotechnology

In this paper we investigate — at a country level — the relationship between the science intensity of patents and technological productivity, taking into account differences in terms of scientific productivity. The number of non patent references in patents is considered as an approximation of the science intensity of technology whereas a country’s technological and scientific performance is measured in terms of productivity (i.e., number of patents and publications per capita). We use USPTO patent-data pertaining to biotechnology for 20 countries covering the time period 1992–1999. Our findings reveal mutual positive relationships between scientific and technological productivity for the respective countries involved. At the same time technological productivity is associated positively with the science intensity of patients. These results are confirmed when introducing time effects. These observations corroborate the construct validity of science intensity as a distinctive indicator and suggest its usefulness for assessing science and technology dynamics.     

The patent activities of Korea and Taiwan: a comparative case study of patent statistics

This paper examines the patent grant rate of Korea and Taiwan by using the country-level patent statistics of Korea, Taiwan and USA during the period of 1988–1998. The patent grant rate means the rate of US patent grants to the applications filed in USA during the investigated years. To measure the grant rate, a model was developed for the methodological procedure. In the framework of the model, the process of patent dynamics in these countries shows different patterns. The financial crisis of Korea in 1998–1999 influenced the number of domestic patent applications by Koreans, resulting in the rapid decrease. The US patent application rate by Koreans, however, was not affected, keeping the average rate of applications at 7.5% of the Korean applications during the investigated period. The rate of US patent grants by Koreans in the early 1990s dropped, which can be explained by the change of patent strategy of Samsung Elec. Co. Ltd.Taiwan, on the other hand, had filed 160% more US patent applications than its own domestic applications. The authors suggest that this is attributable to some US patent applications corresponding to Taiwanese domestic applications for utility models, and that this may be a factor in the lower rate of Taiwanese US patent grants (average 53.4%) than that of Koreans (average 66.3%). The rate of US patent grants by Taiwanese has constantly increased, while that for Koreans has fluctuated; the authors conjecture that this implies that Taiwanese patent management for the US patents has improved.     

US Alien Property Custodian patent documents: A legacy prior art collection from World War II – Part 1. History

In 1943, at the height of World War II, the US Patent Office, by the authorization of the Alien Property Custodian (APC), published 2964 pending patent applications that had been seized from nationals of enemy and enemy-occupied countries. This unusual act – only in 2001 did the USPTO begin routinely publishing some pending patent applications – was prompted by the APC’s wartime mandate to make enemy technology available to American industry. During and after the war many of these applications were issued as patents assigned to the APC. However, up to 58% were abandoned, becoming, in effect, orphan documents. APC documents, although they resemble contemporary patents and are granted prior art status by the USPTO, are virtually unknown today, even among patent professionals. This two-part paper investigates the origins, history and profile of this unique collection of prior art documents. Part one reviews the wartime organization and activities of the Office of the Alien Property Custodian, the agency responsible for the creation of APC documents, the use of vesting orders to seize patents and the APC’s patent portfolio. Part two describes applications published by the APC, their national and technological profiles, and snapshots of the inventors and companies who lost and, in some cases, regained their patent rights.     

Patent litigation precaution method: analyzing characteristics of US litigated and non-litigated patents from 1976 to 2010

This study aims to propose an early precaution method which allows predicting probability of patent infringement as well as evaluating patent value. To obtain the purposes, a large-scale analysis on both litigated patents and non-litigated patents issued between 1976 and 2010 by USPTO are conducted. The holistic scale analysis on the two types of patents (3,878,852 non-litigated patents and 31,992 litigated patents in total) issued by USPTO from 1976 to 2010 has not been conducted in literatures and need to be investigated to allow patent researchers to understand the overall picture of the USPTO patents. Also, by comparing characteristics of all litigated patents to that of non-litigated patents, a precaution method for patent litigation can be obtained. Both litigated patents and non-litigated patents are analyzed to understand the differences between the two types of patents in terms of different variables. It is found that there are statistically significant differences for the two types of patents in the following 11 variables: (1) No. of Assignee, (2) No. of Assignee Country, (3) No. of Inventor, (4) Inventor Country, (5) No. of Patent Reference, (6) No. of Patent Citation Received, (7) No. of IPC, (8) No. of UPC, (9) No. of Claim, (10) No. of Non-Patent Reference, and (11) No. of Foreign Reference. Finally, logistic regression is used for predicting the probability of occurrence of a patent litigation by fitting the 11 characteristics of 3,910,844 USPTO patents to a logistic function curve.     

A case study of impact of patenting in the current developing economies in Asia

In the current scenario of the global economy and race for the next Asian super power, overall economic strength of the two countries, India and China, is a most debated topic. The future role of intellectual property protection especially in the form of patent system and the growth of industrialization for these two developing economies in ASIA may prove to be crucial over all other assets. In the current development scene of the changing global market supported by intangible asset of inventions protected mainly through the patents is emerging to play an important role. This paper elaborates the statistical research on patents granted/filed in the US Patent and Trade Mark office (US-PTO), PCT of WIPO and in the home countries over last 35 years of aforesaid two Asian countries. It is found that the economic and technological growth of both of the countries may make main difference primarily based on the level of patenting activity by them.     

Re-examine the relationship between patents and Tobin’s q

Since the relationship between patents and Tobin’s q is confusing, this paper utilizes panel threshold regression model to re-examine the relationship between patent counts/sales and Tobin’s q. This study finds out patent citations/sales has a single threshold effect on the relationship between patent counts/sales and Tobin’s q in the US pharmaceutical industry. The single threshold value of patent citations/sales is 328.81, and it divides the value of patent citations/sales into two regimes: the first regime (patent citations/sale ≦ 328.81) and the second regime (patent citations/sale > 328.81). The results indicate that patent counts/sales positively affect Tobin’s q in the two regimes. In addition, this study demonstrates that the extent of the positive effect of patent counts/sales on Tobin’s q is different. This study verifies that patent citations/sales moderates the relationship between patent counts/sales and Tobin’s q. Once patent citations/sales is below the threshold value, the extent of the positive relationship between patent counts/sales and Tobin’s q is the most. Therefore, this study finds out that the first regime is optimal.     

Twenty years of US nanopatenting: Maintenance renewal scoring as an indicator of patent value

This paper introduces a new measure of patent value – Maintenance Renewal Score (MRSc) – reflecting assignee valuing the patent by paying successive renewal fees. We generate MRSc's for nanotechnology patents issued by the US Patent Office from 1999 through 2009, with US assignees and US inventors. Patenting increases over this period, coincident with increased US funding of nanotechnology R&D. We compare maintenance rates over the period, and against a comparison set of all 1999 USPTO grants to US inventors/assignees. We find differences in propensity to maintain the nanopatents by institution type, technological sector, and patent complexity.     

Prediction of emerging technologies based on analysis of the US patent citation network

The network of patents connected by citations is an evolving graph, which provides a representation of the innovation process. A patent citing another implies that the cited patent reflects a piece of previously existing knowledge that the citing patent builds upon. A methodology presented here (1) identifies actual clusters of patents: i.e., technological branches, and (2) gives predictions about the temporal changes of the structure of the clusters. A predictor, called the citation vector, is defined for characterizing technological development to show how a patent cited by other patents belongs to various industrial fields. The clustering technique adopted is able to detect the new emerging recombinations, and predicts emerging new technology clusters. The predictive ability of our new method is illustrated on the example of USPTO subcategory 11, Agriculture, Food, Textiles. A cluster of patents is determined based on citation data up to 1991, which shows significant overlap of the class 442 formed at the beginning of 1997. These new tools of predictive analytics could support policy decision making processes in science and technology, and help formulate recommendations for action.     

Patent protection: does it promote or inhibit the patented technological knowledge diffusion?

Patents not only promote the dissemination of technological knowledge through the disclosure of innovative information, but restrict the use of patented technology by the public within the scope of the law. With this exclusive protection on the premise of information disclosure, it is ambiguous whether patents help or hinder the diffusion of knowledge within the span of patents. This study first constructs a multidimensional index of patented technological knowledge diffusion (PTKD) from spatiotemporal aspects, and compares the differences in technological knowledge diffusion of four types of patents—valid patent (VP), zero-cited patent before expiration (Z-B), zero-cited patent after expiration (Z-A), and non-zero-cited patent before and after expiration (NZ-BA). Then, the impact of patent protection—patent lifetime (PL), the number of independent claims (NIC), the number of words in the first independent claim (NWF)—on the degree of PTKD is explored. The results demonstrate that NZ-BA has the highest level of PTKD in terms of growth rate, technological and geographical breadth and depth, followed by VP. Meanwhile, PL affects the diffusion growth rate and technological and geographical breadth negatively, NIC positively affects the diffusion average speed and technological and geographical depth while NWF only positively affects the technological depth of diffusion. These findings highlight the role of different types of patents in promoting technological innovation and promote a better understanding of the correlation between patent protection and PTKD, which provides support for decision-makers to protect property protection and guides the patentees to protect their long-term economic and technological benefits.