Evaluating the Impact of Patent Characteristics and Patent Litigation Probability on Firm Performance – The Case of Pharmaceutical Industry

• Main Authors: Cho-Heng Michael Lee, 李卓恆
• Other Authors: Hsin-Ning Su
• Format: Others
• Language: en_US
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/d77xk7

碩士 === 國立中興大學 === 科技管理研究所 === 102 === This paper investigates if patent characteristics and patent litigation probability affect firms’ short and long-term performances, which in past literature have mostly been associated with economic indicators or financial models. The patent data used in this research are downloaded from the USPTO patent database and patent litigation probabilities are obtained from previous study. To measure firm performance, the Return on Asset (ROA) and the market value are calculated as the short-term and long-term performances, respectively. The correlation coefficient is then employed to approach the ROA and the market value to evaluate if patent characteristics and patent litigation probability correlates with the short-term and long-term performances of firms. To further investigate into the relationships between patent characteristics, patent litigation probability and firm performance, the method of Granger Causality test is used to evaluate the possibility of causal relationships among the indicators. Lastly, the least square regression is used to evaluate the validity of the result of the Granger Causality test. The result indicates that there are indeed relationships present between the patent characteristics and firm performance; furthermore, the result of the Granger Causality test fortifies that by proving that there are statistical causal relationships among the patent characteristics and firm performance. The result of this paper sheds light for firms to make strategic decision based on the patent characteristics of their patent portfolio and to provide a novel way to identify firm performance.