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Research productivity and patent quality: measurement with multiple indicators

Lanjouw, Jean O. and Schankerman, Mark (2002) Research productivity and patent quality: measurement with multiple indicators. 3623. Centre for Economic Policy Research, London, UK.

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Identification Number: 3623


We analyse the determinants of the decline in measured research productivity (the patent/R&D ratio) using panel data on manufacturing firms in the US for the period 1980-93. We focus on three factors: the level of demand, the quality of patents, and technological exhaustion. We first develop an index of patent ‘quality’ using detailed information on patents in the US in seven technology fields. Using a factor model, we construct a minimum-variance index based on four patent characteristics and show that using multiple indicators substantially reduces the measured variance in quality. We then show that research productivity at the firm level is negatively related to the patent quality index and the level of demand, as predicted by an optimizing model of R&D, and positively related to the stock market valuation of patented innovations held by firms.

Item Type: Monograph (Discussion Paper)
Official URL:
Additional Information: © 2002 The Authors
Subjects: T Technology > T Technology (General)
H Social Sciences > HB Economic Theory
Sets: Collections > Economists Online
Departments > Economics
Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Date Deposited: 27 May 2008 11:45
Last Modified: 07 Sep 2012 13:55

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