Market Value of Patents: Evidence from the US, 1976-2017

Jihong Lee () and Hyunkyeong Lim ()

Working Paper Series from Institute of Economic Research, Seoul National University

Abstract: Since the 1980s, the US has experienced a surge in patenting and R&D. To better understand the phenomena, we explore the evolution of the mar- ket value of knowledge capital with a novel firm-level dataset. While the importance of R&D has steadily declined, the market value of patents made a large and sustained gain in the new millennium. An additional patent per million dollars of R&D improves firm value by 11% in the latest decade compared to 3% three decades ago. The increased patent rents are driven largely by young firms, suggesting a positive role of the US patent system.

Keywords: Innovation; ?rm value; patent; R&D (search for similar items in EconPapers)
JEL-codes: G30 O31 O34 O38 (search for similar items in EconPapers)
Date: 2019-01
New Economics Papers: this item is included in nep-his, nep-ino, nep-ipr, nep-sbm and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:snu:ioerwp:no105

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