Pricing Patents through Citations

摘要: This paper provides formal treatment to the idea of patenting as a form market stealing between R&D firms. It extends creative destruction literature by allowing innovations build off each other forming network ideas. Patent citations keep track this network. The theory maps distribution productivities in development new ideas onto patent values through citations. If are drawn from Pareto-Levy then also falls within class. is applied data on US Model-based valuations support assumption Pareto-distributed productivities. As an added feature, model-based outperform citation counts (the traditional measure) proxy for