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Exploring the Tail of Patented Invention Value Distributions

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Abstract

We explore the tail of patented invention value distributions by using value estimates obtained directly from patent holders. The paper focuses on those full-term German patents of the application year 1977 which were held by West German and U.S. residents. The most valuable patents in our data account for a large fraction of the cumulative value over all observations. Several tests are conducted to pin down more precisely the nature of the high-value tail distribution. Among the Pareto, Singh-Maddala and log normal distributions, the log normal appears to provide the best fit to our patented invention value data.

Keywords

  • Patents
  • skew distributions JEL Classification: O34,O31

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Harhoff, D., Scherer, F.M., Vopel, K. (2003). Exploring the Tail of Patented Invention Value Distributions. In: Granstrand, O. (eds) Economics, Law and Intellectual Property. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-3750-9_13

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  • DOI: https://doi.org/10.1007/978-1-4757-3750-9_13

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4419-5416-9

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