英文版IssuedUSpatents.doc

I. DAIZADEH: Patents, patent-related publications, and market indicesJointly published by Akadmiai Kiad, Scientometrics, Vol. 73, No. 1 (2007) 2936Budapest and Springer, Dordrecht DOI: 10.1007/s11192-007-1749-1Issued US patents, patent-related global academicand media publications, and the US market indicesare inter-correlated, with varying growth patternsIRAJ DAIZADEHAmgen, Inc., Thousand Oaks, CA (USA)IRAJ DAIZADEH The increase in patents is a main driving force for discussions of international competitiveness,knowledge spillovers, patent office efficiencies, and others. However, to the authors knowledge, it is interesting that no work has investigated the impact of the growth in the number of patents on patent-related scholarly (peer-reviewed) and media (e.g., press release) literatures, or evidence of inter-relatedness among these three literatures with those of the US market indices (viz., Dow,S&P500, NASDAQ). Here, I report that the growth in the number of US issued patents, the patent related media and peer-reviewed publications, and these indices are statistically correlated, but with drastically different growth rates. This general result affords data supporting a hypothesis that publicly traded companies, as drivers of innovation, are priming a new research area within the scholarly communities and simultaneously affecting market value through, what-may-be-called,“patent journalism.”Introduction To many, patent statistics drive discussions on national and international indicators of innovation (see, e.g., DEBACKERE et al., 2002), industrial knowledge spillovers (see,e.g., FUNG & CHOW, 2002), efficiencies of patent offices (COCKBURN et al., 2002),competition (see, e.g., BANERJEE et al., 2000), stock market effects (see, e.g., DENG et al., 1999), intra-firm organizational dynamics (DAIZADEH, 2003, 2006, 2007)Received January 17,2007Address for correspondence:IRAJ DAIZADEHM/S: 27-2-E, Amgen, Inc., One Amgen Center Drive, Thousand Oaks, CA 91320, USAE-mail: IrajD01389130/US $ 20.00Copyright . 2007 Akadmiai Kiad, BudapestAll rights reservedamong others. As a consequence, patent statistical research has been recently buttressed through financial support of the US government, which has invested over $3.8M within this research area since 1993 with recent awards approaching $780,000 since 2005 (see Table 1).Table 1. A breakdown of the number of US government supported patent projectsNSF funding organization Award amount to date CTS $99,935DBI $114,841DMI $663,485HRD $60,856IIS $333,087OISE $2,130OPA $294,564SES $1,372,039SRS $952,463Total $3,893,400Source: NSF Awards database, located at: /awardsearch/afSearch.do?ProgOrganization=SRS&page=4&SearchType=afSearch&QueryText=&PIFirstName=&PILastName=&COPILastName=&COPIFirstName=&IncludeCOPI=&PIInstitution=&PIState=&PIZip=&PICountry=&ProgProgram=&ProgOfficer=&ProgEleCode=&ProgRefCode=&ProgFoaCode=&CongDistCode=&AwardNumberOperator=&AwardNumberFrom=&AwardNumberTo=&StartDateOperator=&ExpDateOperator=&StartDateFrom=&StartDateTo=&ExpDateFrom=&ExpDateTo=&AwardAmount=&AwardInstrument=&Search=Search#results, and was culled on July 2, 2006 by using the keyword “patent”.To others, patent statistics are viewed critically, as a challenged proxy metric of innovation (PAVITT, 1985). Nonetheless, while this research area is burgeoning, it is of interest that to the authors knowledge no work has investigated the impact of issued US patents on the patent-related academic (scholastic, peer-reviewed) and media (e.g.,press releases) literatures, nor on the inter-correlation of these literatures with those of the various US-based stock indices.Here, I have approached this hypothesis of innovation as a multi-dimensionaloutcome viewed by various interdependent and coupled social phenomena. Here, I affirm that product-dependent technology firms require patents to create and capture economic rents (ALBERT et al., 1998), and extend the investigation on the requirement of advertising the status of patents (e.g., issuance) for value capture and retention (AUSTIN, 1993). Most importantly, I also assess the impact of this patent literature on the various academic communities, which is a completely novel aspect of this paper.My basis for this investigation is as follows: if the growth of the gross number of patents is associated with movements of the stock market (see, e.g., DENG et al., 1999),and if firms would like to advertise the issuance and/or other patent related topics to investors, then it would seem plausible that patent journalism would also be correlative with stock index movement (see AUSTIN (1993) and below for additional discussion). I speculate that such advertising may occur within two dimensions (albeit there may be others): 1) informing the general market of the present or future availability of the innovation, and 2) convincing the academic market of the thoughtfulness of the invention. The former element is viewed through investigating the number and variety of company press or news release information, and the latter may be discovered through investigating the academic and scholarly peer-reviewed scientific and technical literature. Lastly, I also thought that testing this hypothesis would shed light on the possibility of emergence of a new research area centered on scholarly work focused on patents, which arguably would be of inter-disciplinary character attracting physical and natural science scholars as well as management and policy researchers.Here, I investigate the above hypotheses and report a first finding revealing that the growth of the peer-reviewed and media publications are strongly and positively correlated with, but growing faster than, the number of US issued patents (see Figure 1 and Table 2). I use number of articles in the PubMed and Factiva databases as proxies for the interest of the academic and media literatures, respectively. Further, I show that there the growth curves of these three literatures are statistically correlated with the various stock indices (viz., the Dow Jones, Standard & Poors 500 (S&P500), and NASDAQ) (see Figure 2 and Table 2). Thus, it may be thought that the growth in thenumber of publicly traded technology firms is also coupled with the growth of the various patent-related publications.Figure 1. Dow, Standard & Poors 500, and NASDAQ indices over the recent years.Data obtained from /Figure 2. The number of publications found within each respective database. Each database searchparameterized with the keyword “patent” and the appropriate date range. Data obtained from thePubmed (/), Factiva (/), Business Source Premier(/), and USPTO (/patft/index.html)Table 2. Spearman correlation coefficients (and p-values) calculated using the R-Program(see R Development Core Team, 2006)This brief report is outlined as follows, after I describe the method and results, conclude with a discussion of the implications of this research and future work.Data, methods and resultsThe data used to harness information concerning the scholarly and public media impact of patent related outcomes were culled from that of the PubMed, Business Source Premier, and Factiva databases. These databases were chosen due to their popularity, size and breadth of information. A brief review of each database follows.The PubMed data repository (NCBI-PUBMED, 2007) houses MedLine andOldMedLine, as well as the following:“The out-of-scope citations (e.g., articles on plate tectonics or astrophysics) from certain MEDLINE journals, primarily general science and chemistry journals, for which the life sciences articles are indexed for MEDLINE. Citations that precede the date that a journal was selected for MEDLINEindexing. Some additional life science journals that submit full text toPubMedCentral and receive a qualitative review by NLM.”I note that:“MEDLINE cover(s) the fields of medicine, nursing, dentistry, veterinary medicine,the health care system, and the preclinical sciences. MEDLINE contains bibliographic citations and author abstracts from more than 5,000 biomedical journals published in the United States and 80 other countries. The database contains over 15 million citations dating back to the mid-1950s. Coverage is worldwide, but most records are from English-language sources or have English abstracts. See also the MEDLINE/PubMed Resources Guide.”Thus, I presume from the above description that the PubMed database contains both medically and non-medically relevant patent-related non-business academic work.While the PubMed data repository ideally suits the investigation, it is focused on the science and technology academic sectors. To reveal any research on patents within the general and specialty business scholarly work, I used the Business Source Premier database. This database provides full text for 2300 journals dating back to 1965 (EBSCO, 2007).The Factiva data repository contains “10,000 publications from 159 countries, 350 geographic regions and in 22 languages (Factiva Brochure, 2007).” Concerning a more detailed view of the database, the following is noted from the Factiva Brochure (modified from ibid; the word global has been placed and additional descriptive information only has been removed): 2,100+ global, newspapers same-day and archival coverage 3,500+ global, general business magazines 500+ global, newswires 280+ global, media program transcripts 12,000+ global, web sites (“The worlds top news and business Web sitesin more than 20 languages.”) 27,000+ company reportsDue to the relative long timelines, shear trade volume, and to investigate effects of innovation (via US issued patents), the Dow Jones, Standard & Poors 500 (S&P500),and NASDAQ indices were investigated. These databases are not global, though manyof their companies have locations internationally or have multiple listings oninternational markets. A discussion of the limitations for utilizing the US indices for this exercise is presented below.Using patent keyword searches over specified date ranges on PubMed (a globalscientific and academic abstracts repository), Factiva (a global business-related press releases and news repository accessible), and Business Source Premier (a globalmanagement and business peer-reviewed publications repository) databases, I find thatthe percentage increase of these publications were 700%, 100,000%, and 10,000%,respectively, from 1970 to 2004 (see Figure 1 and caption for web-links). This iscomparatively faster growth rate than the rate of issued US Patents found from theUSPTO (166%) over the same period. A two-sided Spearman rho correlation test using the R-program (R Development Core Team, 2002) was then performed usingthe values shown in Figure 1 and 2 against the USPTO issued patents. Table 2 presentsthe results of the statistical analysis.ConclusionThe strong, positive correlation between the number of issued US patents andFactiva, as a global source of business news content, reinforces findings that firms areattempting to create and appropriate value through the global communication of USpatent issuance to their variance stockholders (e.g., stock price dependence and patentissuance communication). This result is consistent with the literature (see, e.g., AUSTIN,1993). The correlation with PubMed suggests that firms are using a two-prongedapproach to disseminating information viz., 1) to the professional news media, and 2)to the professional academic forum. This result is probably industry dependent, butadditional work needs to be performed to understand the exact nature of thecorrespondence.A main take home lesson form this inquiry is that with the rise in number of patentrelatedacademic (scholarly, peer-reviewed ) papers increase, I have entered or areentering into a new science with more than a cursory interest in patents. This scienceis the study of the patent system and its outcomes. Interestingly, this research areaseems to have gaining momentum from the unification of the scholarly social sciences(e.g., economics and management theory) and that of the natural and physical scientificdisciplines. An interpretation of this data may be suggesting that I am observing anemerging inter-disciplinary research area.In summary, I have shown that the growth of the number of issued US patents hasdirectly influenced the growth of other literatures, including those of the media andpeer-reviewed publications. I have also shown that there is a correlation between thesethree literatures and the growth of three market indicators. These findings demonstratethat patents may be a unifying force drawing together the disciplines of policy, thesocial, natural, and physical sciences. Future studies are required to understand morefully the scope of the implications found from this elementary research.*Comments from referees are appreciated. The views presented in this publication are those solely of the author and are not intended in any way to reflect the views of Amgen Inc.ReferencesALBERT, M. B., YOSHIDA, P. G., VAN OPSTAL, D. (1998), The New Innovators: Global Patenting Trends inFive Sectors. US Department of Commerce Office of Technology Policy, USA.AUSTIN, D. H. (1993), An event-study approach to measuring innovative output: The case of biotechnology.Amer. Econ. Rev. (Papers and Proc. 105th Ann. Meet. Amer. Econ. Assoc.), 83 : 253258.BANERJEE, P., GUPTA, B. M., GARG, K. C. (2000), Patent statistics as indicators of competition: An analysisof patenting in biotechnology, Scientometrics, 47 (1) : 95116.COCKBURN, I. M., KORTUN, S., STERN, S. (2002), Are All Patent Examiners Equal? The Impact ofCharacteristics on Patent Statistics and Litigation Outcomes. NBER Working Paper Series, Workingpaper number: 8980. JEL No. O3, K3, L3.DAIZADEH, I. (2003) Integrating intellectual property within the organizational social structure. NatureBiotechnology, 21 : 573575.DAIZADEH, I. (2006), Using intellectual property to map the evolution of a firms social structure: Tracing abiotechnology company from startup to bu