Patent Know-how Indicators

Patent are essentially the most precious type of info obtainable for competivie evaluation. Completely different indicator are getting used to foretell the worth of a patent or any firm’s energy. Tech-Line® makes use of three commonplace patent indicators and 6 superior quotation indicators invented by CHI to research company technological energy.

All indicators are calculated for specific firms, in particular applied sciences over a time interval. As a result of patent quotation charges differ by expertise, comparisons ought to be made solely inside related expertise teams.

Fundamental Indicators

* Variety of patents

* Patent progress % in space

* % of firm patents in space

Patent Quotation Indicators

* Cites per patent

* Present influence index (CII)

* Know-how energy (TS)

* Know-how cycle time (TCT)

Science Linkage Indicators

* Science Linkage (SL)

* Science Power (SS)

Fundamental Indicators

Tech-Line makes use of three indicators based mostly on patent counts:

Variety of Patents – A depend of an organization’s patents issued within the U.S. patent system. As a result of the U.S. is such a big market, even non-US firms search the safety of a U.S. patent for his or her most vital improvements. By monitoring variety of patents, progress in patenting and distribution throughout expertise areas, you possibly can monitor and evaluate the evolution of firms’ R&D exercise by expertise space. Variety of patents tracks R&D spending however may be disaggregated throughout applied sciences whereas R&D spending normally can not.

Patent Progress % in Space – The change within the variety of patents from one time interval to a different, expressed as a share. This identifies applied sciences receiving rising emphasis and people during which innovation is slackening off. It additionally identifies firms rising their technological improvement, and people whose R&D is performed out.

% of Firm Patents in Space – The variety of patents in a expertise space divided by the full variety of patents for that firm, expressed as a share. This tells you which of them applied sciences kind the core of an organization’s mental property portfolio.

Patent Quotation Indicators

4 Tech-Line indicators are derived by analyzing the references on the entrance pages of patents, or “patent citations.” References are positioned on patents to assist set up the novelty of the invention. Innovations should be novel to be awarded a patent. To allow the patent workplace examiner to evaluate the novelty of the invention, a patent doc lists “prior artwork” within the type of references to earlier patents in the identical space. Patent citations additionally play an vital position in patent infringement litigation by delineating the area of the patent.

In counting citations, we reverse the attitude and depend what number of citations a patent receives from subsequent patents. It is a means of counting what number of instances a patent turns into prior artwork in future technological advances. Analysis has established that extremely cited patents symbolize economically and technically vital innovations. Particulars on the historical past and validity of patent quotation evaluation are within the Tech-Line background paper.

Cites Per Patent- A depend of the citations acquired by an organization’s patents from subsequent patents. This lets you assess the technological influence of patents. Excessive quotation counts are sometimes related to vital innovations, ones which are basic to future innovations. Firms with extremely cited patents could also be extra superior than their rivals, and have extra precious patent portfolios.

Present Affect Index (CII) – The variety of instances an organization’s earlier 5 years of patents are cited within the present yr, relative to all patents within the U.S. patent system. Signifies patent portfolio high quality. A worth of 1.0 represents common quotation frequency; a price of two.0 represents twice common quotation frequency; and 0.25 represents 25% of common quotation frequency. In a Tech-Line firm report, you possibly can determine the applied sciences during which firms produce their finest work. In a Tech-Line expertise report you possibly can benchmark an organization’s technological high quality in opposition to different firms and in opposition to the typical for the expertise. (CII’s differ by expertise. For instance, they’re excessive in semiconductors, biotechnology, and prescription drugs, and low in glass, clay & cement, and textiles.) CII has been discovered to be predictive of an organization’s inventory market efficiency.

Know-how Power (TS) – High quality-weighted portfolio measurement, outlined because the variety of patents multiplied by present influence index. Utilizing Know-how Power you could discover that though one firm has extra patents, a second could also be technologically extra highly effective as a result of its patents are of higher high quality.

Know-how Cycle Time (TCT) – Signifies pace of innovation or how briskly the expertise is popping over, outlined because the median age in years of the U.S. patent references cited on the entrance web page of the corporate’s patents. Firms with shorter cycle instances than their rivals are advancing extra shortly from prior expertise to present expertise. In semiconductors, cycle instances are quick (3-4 years); in shipbuilding they’re lengthy (greater than 10 years). The typical is 8 years. In fast-paced applied sciences, TCT lets you determine firms that will acquire the benefit by innovating extra shortly.

Science Linkage Indicators

Two Tech-Line indicators are derived by analyzing the entrance web page of patents. Patent paperwork should cite related prior artwork (see patent quotation). More and more, patents are citing non-patent paperwork as prior artwork, and lots of of those are papers in scientific journals. Tech-Line’s Science Linkage and Science Power indicators are based mostly on counts of patent references to scientific papers. Patents that reference many scientific journal articles are totally different from patents that reference none. For instance, a patent on a genetically engineered seed, or on a neural community based mostly course of management might reference 10 or extra scientific articles. In distinction, an improved design for part of a motor might reference none. Tech-Line’s indicators construct on this distinction, differentiating firms and applied sciences which are high-tech from these that aren’t. That is significantly helpful in areas like agriculture, the place patents for plows are blended in with superior agrobiotechnology. Science Linkage can differentiate between the 2.

Science Linkage (SL) – The typical variety of science references cited on the entrance web page of the corporate’s patents. Excessive science linkage signifies that an organization is constructing its expertise based mostly on advances in science. Excessive-tech firms are inclined to have increased science linkage than their rivals. Science Linkage allows you to pick the high-tech gamers in even conventional areas similar to agriculture or textiles. Science Linkage has been discovered to be predictive of an organization’s inventory market efficiency.

Science Power (SS) – The variety of patents multiplied by science linkage. Signifies the full quantity of an organization’s science linkage exercise. Science energy reminds us that though a small biotech agency might use science very intensively, an enormous pharmaceutical agency in reality has a larger reliance on science as a result of it makes use of analysis throughout a a lot bigger R&D effort

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