Measuring Technological Novelty with Patent-Based Indicators

45 Pages Posted: 22 Jan 2014 Last revised: 11 Jul 2015

See all articles by Dennis Verhoeven

Dennis Verhoeven

KU Leuven - Faculty of Business and Economics (FEB); London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP)

Jurriën Bakker

KU Leuven - Department of Managerial Economics, Strategy, and Innovation

Reinhilde Veugelers

Catholic University of Leuven (KUL) - Department of Applied Economics; Centre for Economic Policy Research (CEPR)

Date Written: April 1, 2015

Abstract

This study provides a new, more comprehensive measurement of technological novelty. Integrating insights from the existing economics and management literature, we characterize inventions ex ante along two dimensions of technological novelty: Novelty in Recombination and Novelty in Knowledge Origins. For the latter dimension we distinguish between Novel Technological and Novel Scientific Origins. For each dimension we propose an operationalization using patent classification and citation information. Results indicate that the proposed measures for the different dimensions of technological novelty are correlated, but each conveys different information. We perform a series of analyses to assess the validity of the proposed measures and compare them with other indicators used in the literature. Moreover, an analysis of the technological impact of inventions identified as novel shows that technological novelty increases the variance of technological impact and the likelihood of being among the positive outliers with respect to impact. This holds particularly for those inventions that combine Novelty in Recombination with Novelty in Technological and Scientific Origins. The results support our indicators as ex ante measures of technological novelty driving potentially radical impact.

Keywords: Novelty, patent based indicators, radical inventions

JEL Classification: H23, O31, O38

Suggested Citation

Verhoeven, Dennis and Bakker, Jurriën and Veugelers, Reinhilde, Measuring Technological Novelty with Patent-Based Indicators (April 1, 2015). Available at SSRN: https://ssrn.com/abstract=2382485 or http://dx.doi.org/10.2139/ssrn.2382485

Dennis Verhoeven (Contact Author)

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

Naamsestraat 69
Leuven, B-3000
Belgium

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom

Jurriën Bakker

KU Leuven - Department of Managerial Economics, Strategy, and Innovation ( email )

Naamsestraat 69 bus 3500
Leuven, 3000
Belgium

Reinhilde Veugelers

Catholic University of Leuven (KUL) - Department of Applied Economics ( email )

Leuven, B-3000
Belgium
+32 16 32 6908 (Phone)
+32 16 32 6732 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
112
Abstract Views
973
rank
252,595
PlumX Metrics