Literature Review

• Published date: 21 May 2005
• DOI: https://doi.org/10.1108/S0573-8555(2005)0000272006
• Pages: 5-13
• Date: 21 May 2005
• Author: M. McAleer,Daniel Slottje,Pei Syn Wee

CHAPTER 2

Literature Review

2.1.

INTRODUCTION

Patent statistics has been an area of increasing research by econo-

mists in recent years. The key issue that continues to challenge

researchers is the extent to which technological advances are

captured by patent statistics.

2.2.

PROBLEMS OF PATENT STATISTICS

A major problem cited by Griliches (1990) in using patents for

economic analysis

is

their classification.

Since patents data are

organ-

ized by

firms

or by patent classes, it is difficult to match them to the

relevant industries or product groups. The USPTO attempted to

resolve the problem by developing a "concordance" between patent

classes and the Standard Industrial Classification (SIC) for

industries. However, the assignment is arbitrary and many of the

basic classification issues remain unanswered.

Another problem is the intrinsic variability of patents, which

differ greatly in their technical and economic significance. Many

patents reflect minor improvements of little future economic value,

while others are extremely valuable. Currently, there is no adequate

procedure for "weighting" different patents appropriately.