Hall BH, Jaffe A, Trajtenberg M "Market value and patent citations" Rand Journal of Economics 36(1):16-38 Spr 2005

[Eugene Garfield]

E-mail Addresses: bhhall at econ.berkeley.edu, ajaffe at brandeis.edu,
manuel at post.tau.ac.il



Title    : Market value and patent citations

Author(s): Hall BH, Jaffe A, Trajtenberg M

Source: RAND JOURNAL OF ECONOMICS 36 (1): 16-38 SPR 2005

Document Type: Article    Language: English
Cited References: 39      Times Cited: 0

Abstract:
We explore the usefulness of patent citations as a measure of
the "importance" of a firm's patents, as indicated by the stock market
valuation of the firm's intangible stock of knowledge. Using patents and
citations for 1963-1995, we estimate Tobin's q equations on the ratios of
R&D to assets stocks, patents to R&D, and citations to patents. We find
that each ratio significantly affects market value, with an extra citation
per patent boosting market value by 3%. Further findings indicate
that "unpredictable" citations have a stronger effect than the predictable
portion, and that self-citations are more valuable than external citations.

Addresses: Hall BH (reprint author), Univ Calif Berkeley, NBER, Berkeley,
CA 94720 USA
Univ Calif Berkeley, NBER, Berkeley, CA 94720 USA
Brandeis Univ, Waltham, MA 02254 USA
Tel Aviv Univ, NBER, Tel Aviv, IL-69978 Israel

E-mail Addresses: bhhall at econ.berkeley.edu, ajaffe at brandeis.edu,
manuel at post.tau.ac.il

Publisher: RAND, 810 EAST 10TH ST, LAWRENCE, KS 66044 USA
Subject Category: ECONOMICS
IDS Number: 936IO

ISSN: 0741-6261


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