The Social Value of Innovation
Innovation is the most fundamental entrepreneurial activity. Researches in marketing, strategy, economics, and law make attempts to ascertain the substance of innovation – is it radical or incremental? To answer this question, we present Patent Rank as a continuous, objective measure to define the intrinsic value of a patent innovation. Utilizing fundamental first principles of patent data, we introduce Patent Ranks as a comprehensive, total-effects network centrality metric. From 1975-2013, we compute annual Patent Rank scores for over 6 million patents using mare than 60 million patent-citation associations. We benchmark Patent Rank to the Traditional Trajtenberg (1990a) metric; forward-citation counts, and demonstrates that Patent Rank has better explanatory power to define the “social value of innovation”. The scientific rigor of Patent Rank to measure network dynamics can provide meaningful and relevant business intelligence services to the market.
Patent intelligence is great, but what use is it if you can’t do anything with it? Typical patent and intellectual property valuation services focus on quantifying value via economic means and leaving it at that. While this is a great asset to have, it does not inspire action! Patent Rank provides the complete package that includes economic valuation, present and future potential, and market recommendations. Don’t sell your ideas short and don’t make the mistake of paying for services that often render themselves to be obsolete. Take off with your innovation by recognizing it’s true potential and using that to make informed business decisions.
The “holy grail” in intellectual-property management is to define the value of patented innovations. Patent Rank gives an objective benchmark to begin such a quest. Often, financial value is many times negotiated, and most financial data to correlate to benchmarks is confidential. However, having an objective benchmark like Patent Rank gives us a starting point to understand financial value in context of licensing, sales, assertions, etc. within context of the firm and its industry.
Hat, patent numberd 1,062,025: Don’t go bald from tight fitting hats. This hat has a series of depressions on the hat band, allowing blood to freely circulate.
Gallagher and Dawsey
The Support of Science
The innovation aims to develop a patent-valuation system that considers the totality of a United States patent’s “prior-art” patent-citations. Using network mathematics of eigenvector centrality, a patent’s intrinsic value is calculated based on recursively weighting associations between a patent and other patents (its backward and forward citations). This methodology establishes the values of the patents relative to each other so we have a uniform evaluation standard for all patents in the United States Patent & Trademark Office (USPTO). As Google’s PageRank algorithm has used rigorous mathematics to bring ‘order to the web,’ this algorithm has the potential to bring order to the patent-valuation problem. At a particular point in time, every patent within the entire universe of United States patents receives a score which can be ranked in a myriad of ways, such as: within a respective patent portfolio (a firm portfolio, an inventor portfolio, a patent-agent portfolio), within a technology classification, universally within the entire network, and so on. Monitoring the diffusion of a patent’s marginal score over time (i.e., a patent’s Schumpeterian shock) also makes it possible to predict a potential lifetime value of a patent.
The science behind Patent Rank can be a bit confusing at times, so let us give you the bottom line benefit – Patent Rank inspires action. Take the next steps in your pursuit of economic prosperity by using Patent Rank and the actionable patent intelligence we provide.