The Market Value of Blocking Patent Citations

29 Pages Posted: 15 Jul 2011

See all articles by Dirk Czarnitzki

Dirk Czarnitzki

Catholic University of Leuven (KUL); Centre for European Economic Research (ZEW)

Katrin Hussinger

Universite du Luxembourg; Catholic University of Leuven (KUL); Centre for European Economic Research (ZEW)

Bart Leten

KU Leuven - Faculty of Business and Economics (FEB)

Multiple version iconThere are 2 versions of this paper

Date Written: March 2011

Abstract

There is a growing literature that aims at assessing the private value of knowledge assets and patents. It has been shown that patents and their quality as measured by citations received by future patents contribute significantly to the market value of firms beyond their R&D stocks. This paper goes one step further and distinguishes between different types of forward citations patents can receive at the European Patent Office. While a patent can be cited as non-infringing state of the art, it can also be cited because it threatens the novelty of patent applications (“blocking citations”). Empirical results from a market value model for a sample of large, R&D-intensive U.S., European and Japanese firms show that patents frequently cited as blocking references have a higher economic value for their owners than patents cited for nonblocking reasons. This finding adds to the patent value literature by showing that different types of patent citations carry different information on the economic value of patents. The result further suggests that the total number of forward citations can be an imprecise measure of patent value.

Keywords: market value, patents, citations, patent value

JEL Classification: O31, O34, O38

Suggested Citation

Czarnitzki, Dirk and Czarnitzki, Dirk and Hussinger, Katrin and Leten, Bart, The Market Value of Blocking Patent Citations (March 2011). Available at SSRN: https://ssrn.com/abstract=1868847 or http://dx.doi.org/10.2139/ssrn.1868847

Dirk Czarnitzki (Contact Author)

Catholic University of Leuven (KUL) ( email )

Faculty of Economics and Business
Naamsestraat 69
Leuven, 3000
Belgium
+32 16 326906 (Phone)
+32 16 325799 (Fax)

HOME PAGE: http://www.econ.kuleuven.be/msi/faculty_members.htm

Centre for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
Mannheim, 68034
Germany

Katrin Hussinger

Universite du Luxembourg ( email )

L-1511 Luxembourg
Luxembourg

Catholic University of Leuven (KUL) ( email )

Steunpunt O&O Statistieken
Dekenstraat 2
B-3000 Leuven
Belgium

Centre for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Bart Leten

KU Leuven - Faculty of Business and Economics (FEB) ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

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