Dynamics of Assignee Networks: A New Approach for Measuring the Impact on Patent Value Based on Network Analysis

Abstract

This article outlines a network approach to the study of impact factors of patent value. Firms protect their property right of each innovation as the assignee of the patent. Advanced technological capabilities constitute a major resource for firms trying to achieve and maintain competitive advantages. Firms are also assessed by the overall value of its intellectual properties, especially the patents. Researchers have been trying to quantify patent value and study the related influence factors. Among all the characteristics of patents, citations represent the knowledge flows between innovations. This information can be used to measure and track the significance of each patent. The activity of a firm citing patents from other firms during a patent application indicates its R&D intention and interest, creating a strategical link between the assignees of the involved patents. In this study, a new approach of studying the impact of an assignees role on patent value by network analysis is proposed. Our analysis showed that in-degree centrality and betweenness centrality of an assignees position in the interaction network have a significant impact on its patent value, while the effect of out-degree centrality is inconclusive. This approach provides a perspective of assessing the overall patent value of a firm, which can serve as a reference for managerial purpose of allocating firm resources and investments.