Measuring Innovation Using Patent Data

32 Pages Posted: 14 Jul 2020 Last revised: 6 Aug 2020

See all articles by Roger Svensson

Roger Svensson

Research Institute of Industrial Economics (IFN)

Date Written: April 7, 2015

Abstract

Firms and governments spend billions of dollars on R&D every year. To increase social welfare, the results of R&D must be commercialized so that consumers can benefit from improved products and lower prices. One measure of R&D output is patents; however, most patent databases contain no information on whether patents have been commercialized, i.e., whether innovations have been introduced in the market. This paper applies a new method to identify innovations in patent databases by relating traditional patent quality indicators (patent renewal, patent equivalents and forward citations) to patent commercialization variables. For this purpose, I use a unique database on Swedish patents that includes information on whether patents are commercialized and whether the commercialization is profitable. The estimations show that commercialization is strongly positively correlated with both patent renewal and patent equivalents but only moderately positively correlated with forward citations. Further, successful innovations are most positively related to patent renewal. Based on the traditional patent quality indicators and estimated parameters in the model, probabilities of commercialization and successful innovations can be predicted. The developed parameters may be used to identify innovations across sectors and regions in other patent databases.

Keywords: Patents, commercialization, innovations, profitability, patent renewal, patent equivalents, forward citations, predicted probabilities

JEL Classification: O31, O34

Suggested Citation

Svensson, Roger, Measuring Innovation Using Patent Data (April 7, 2015). IFN Working Paper No. 1067, 2015, Available at SSRN: https://ssrn.com/abstract=3632376 or http://dx.doi.org/10.2139/ssrn.3632376

Roger Svensson (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden
+46-8-6654549 (Phone)
+46-8-6654599 (Fax)

HOME PAGE: http://www.ifn.se

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
28
Abstract Views
148
PlumX Metrics