Measuring cross-country heterogeneity in the value of patents based on the patent-trade relationship

ABSTRACT

Because of the heterogeneity of the patent protection system and the business environment across countries, the private value of patents varies. Therefore, current approaches that mostly consider the level of patent protection have limitations in capturing the strategic value of patents. This paper suggests a new approach for estimating the perceived private value of a patent in a country by considering the scale of trade in the United States, Europe, China, Japan, Korea, Brazil, India, Canada, and Russia. The results indicate that the value of patents in a country changed over the sample period, regardless of the level of patent protection, suggesting that changes in the strategic business value of patents played a key role in the value of patents in those countries.

KEYWORDS:

• Export-patent relationship
• foreign patenting
• strategic patenting
• value of patents

JEL CLASSIFICATION:

• O34
• F14
• O32

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This research was supported by Basic Science Research Program through the National Research Foundation of Korea (NRF) funded by the Ministry of Education [2021R1A6A1A14045741].