As a result of the empirical connection between patent value and forward citation count, researchers have used citation count as a measure of patent value and applied patent citation analysis to various economic issues. However, theoretical concerns continue to be raised in scholarly literature and court opinions.

Senior Consultant Dr. Daniel Werner and Senior Analyst Huy Dang summarize an approach that has been used by prior practitioners to estimate the relative value of patents in a portfolio using forward citations. They perform analyses to investigate the sensitivity of the approach to various assumptions.

The authors find that some concerns of prior literature are well founded, while others are less so. Read about their estimate, analysis, and findings in the Journal of Business Valuation and Economic Loss Analysis.

To read the full article, please note it is behind a paywall here.