The Patent Asset Index: A New Approach to Benchmark Patent Portfolios

The Patent Asset Index ‒ A New Approach to Benchmark Patent Portfolios

January 1, 2010

Author: Ernst, H., Omland, N. 2011

Publication: World Patent Information, Vol. 33, pp. 34-41

Patent metrics are increasingly used to assess the competitive position of technology-oriented firms. Patent rankings and patent scoreboards are popular methods to benchmark patent portfolios of firms against each other.

Existing rankings, however, have methodological limitations that significantly reduce the meaningfulness of these benchmarks for managers, investors and other stakeholders. In this paper, we develop a new benchmarking methodology that overcomes the limitations of existing approaches and offers a more accurate assessment of a firm’s patent portfolio vis-à-vis its competitors

Firms are ranked according to the Patent Asset Index, which is derived from a set of newly developed patent indicators. These
indicators are empirically validated and reflect more accurately the value of patents. We apply the
new benchmarking method in the global chemical industry and contrast our findings with those of other
existing patent portfolio rankings.

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