Selling Ideas: The Determinants of Patent Value in an Auction Environment

Abstract

Although previous empirical studies have found relationships between patent characteristics and value, none have determined how specific attributes relate to auction value or even the probability of a successful auction sale. Using a Heckman two-step model, we regress thirteen independent variables against unique patent auction data, finding that publicly-owned and frequently referenced patents are more valuable, and that other things equal, there is an optimal time to offer a patent up for auction.

Keywords: auction, patent, citation, valuation

JEL Classification: O31, O32, O33, O34