1 Patent analysis Presenter: Huang Ming-Chao Date: 06/25/2008

2 Highlight of Patent analysis The content of patent data  Inventor  Assignee  Application/issued date  IPC/UPC  Reference/citation The unit of analysis  Firm-year level (cross-section & time series)  Patent level  Firm level

3 The content of patent data Backward citation IPC UPC

4 Content Patent Analysis  Firm-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 performance  Impact (backward citation)  Breakthrough innovation  Patent spell  Follow-on patenting

5 Patent analysis: Firm-year level

6 Rosenkopf and Nerkar (SMJ, 2001) Industry: optical disk industry Framework Technological domain (Within or beyond) Technological domain (Within or beyond) Firm domain (Within or beyond) Firm domain (Within or beyond) Impact (domain or overall) Impact Organizational boundary Technological boundary

7 Rosenkopf and Nerkar (SMJ, 2001) Framework Firmdomain Technologicaldomain Firm-year Patent citations DomainImpact OverallImpact Backward citationForward citation Time frame: Time frame: USPTO databaseUSPTO database 22 firms22 firms 2,333 patents2,333 patents 371 firm-year observations371 firm-year observations Dependent variable: patent count (exclude self-citation)Dependent variable: patent count (exclude self-citation) Negative binomial regressionNegative binomial regression Time frame: Time frame: USPTO databaseUSPTO database 22 firms22 firms 2,333 patents2,333 patents 371 firm-year observations371 firm-year observations Dependent variable: patent count (exclude self-citation)Dependent variable: patent 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: R&D alliances, 487 firms, 1,005 observations. Negative binomial regression Technological diversity Alliance type Innovation performance U Inverse U

10 Sampson (AMJ, 2007) Technological diversity Dependent variable  Post-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 origin Theory or perspective  Organizational learning  Absorptive capacity Data  Bioscan 87 firms, 707 patents, 5988 backward citations, 4117 forward citations TechnologicalProximate knowledge Technologicaldistant knowledge focal patents 1988 Filed in by 87 firms 5,988 5,988 backward citation patents 4,117 4,117 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: ,644 firms 211,636 patents (observations) Unit of analysis: patent Negative binomial regression

15 Patent-based innovation performance- Patent count Impact Rosenkopf and Nerkar (2001) optical disk patents  Domain impact equals the number of citations from optical disk patents (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. non-optical disk patents  Overall impact is the total number of citations from non-optical disk patents received by firm i’s patents granted in year t. Breakthrough innovation Phene, 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 spell Alfranca, 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 patenting McGrath 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).