Determinants of Patent Citations in Biotechnology: An Analysis of Patent Influence Across the Industrial and Organizational Boundaries (1403.2096v1)

Abstract: The present paper extends the literature investigating key drivers leading certain patents to exert a stronger influence on the subsequent technological developments (inventions) than other ones. We investigated six key determinants, as (i) the use of scientific knowledge, (ii) the breadth of the technological base, (iii) the existence of collaboration in patent development, (iv) the number of claims, (v) the scope, and (vi) the novelty, and how the effect of these determinants varies when patent influence - as measured by the number of forward citations the patent received - is distinguished as within and across the industrial and organizational boundaries. We conducted an empirical analysis on a sample of 5671 patents granted to 293 US biotechnology firms from 1976 to 2003. Results reveal that the contribution of the determinants to patent influence differs across the domains that are identified by the industrial and organizational boundaries. Findings, for example, show that the use of scientific knowledge negatively affects patent influence outside the biotechnology industry, while it positively contributes to make a patent more relevant for the assignee's subsequent technological developments. In addition, the broader the scope of a patent the higher the number of citations the patent receives from subsequent non-biotechnology patents. This relationship is inverted-U shaped when considering the influence of a patent on inventions granted to other organizations than the patent's assignee. Finally, the novelty of a patent is inverted-U related with the influence the patent exerts on the subsequent inventions granted across the industrial and organizational boundaries.

• The paper empirically analyzes how six specific factors determine the influence of biotechnology patents across industrial and organizational boundaries.
• Factors like scientific knowledge, breadth, and collaboration affect patent influence differently within and beyond the biotechnology industry and organization.
• The number of claims, patent scope, and novelty often show an inverted-U effect on influence, indicating that excessively complex or novel patents may be less cited.

An Examination of Patent Influence Determinants in Biotechnology

This paper presents a comprehensive exploration of the factors that determine the influence of patents within the biotechnology industry, with a particular focus on how these factors vary across industrial and organizational boundaries. The authors, Messeni Petruzzelli, Rotolo, and Albino, undertake an empirical analysis using data drawn from 5,671 biotechnology patents granted in the United States from 1976 to 2003. Their objective is to identify key determinants that influence the extent to which specific patents garner forward citations, a proxy indicator for technological impact.

Key Determinants of Patent Influence

The paper identifies six critical determinants influencing patent citations: the use of scientific knowledge, the breadth of the technological base, the existence of collaboration during patent development, the number of claims, the patent’s scope, and its novelty. Each of these determinants contributes variably to patent influence when assessed across differing domains—specifically distinguishing patent impact within and beyond both the industrial and organizational settings.

1. Use of Scientific Knowledge: Findings indicate that scientific knowledge positively impacts a patent's influence within the assigning firm, while it negatively affects impact beyond the biotechnology industry. This suggests a nuanced role of complexity and specificity in the understanding and application of scientific foundations underlying a patent.
2. Technological Breadth: This factor only demonstrates a significant adverse effect on patent influence beyond the biotechnology sector, suggesting that too broad a technological base might introduce complications that limit applicability across diverse industries.
3. Collaboration in Development: A positive influence was observed when assessors focused within the biotechnology space, indicating that joint development often aligns with strategic intra-industry objectives.
4. Number of Claims: The impact of claims on patent influence presents an inverted-U relationship across most measured domains. This indicates that while an increased number of claims initially broadens the patent's technological reach, excessive complexity thereafter reduces its appeal for subsequent innovation.
5. Scope of the Patent: A broader scope enhanced a patent’s influence beyond the biotechnology industry, yet within organizational contexts, an inverted-U relationship suggests that scope may entail strategic positioning rather than intrinsic value alone.
6. Novelty: The degree of novelty also revealed an inverted-U effect on influence across industrial and organizational boundaries, highlighting that excessively novel patents may face barriers in terms of assimilation and further development by other firms, particularly beyond biotechnology.

Implications and Future Research Directions

The paper holds substantial implications for both academia and industry. It elucidates the necessity for organizations to strategically align their patenting efforts with targeted domains of impact, whether inter-firm or across industrial sectors. Further, the results underscore the importance of balanced patent attributes that harmonize innovation with strategic applicability.

For future research, the paper underlines the potential for examining cross-domain interactions of these determinants, as well as exploring additional contextual factors such as geographical and institutional influences. The insights derived from this research are particularly salient for policy-makers aiming to incentivize innovation and for companies negotiating the complexities of intellectual property strategy in biotechnology.

In conclusion, by delineating how various factors influence patent citations across different contexts, this paper provides a valuable framework for understanding the multi-faceted nature of technological development and its dissemination in the biotechnology industry. The proposed methodologies and findings constitute a significant contribution to the broader discourse on intellectual property dynamics and innovation management.