The Patent Asset Index is an objective measure of global technological strength and innovation. This indicator captures an entire global patent portfolio and considers both the number of patent-protected inventions (patent families) in this portfolio and their quality. The methodology has been developed and validated in scientific research and many years of advising companies on patents and innovation strategy.
The Patent Asset Index methodology allows for identifying patent gems that businesses can leverage to create value from innovation. It is therefore a key element in our unique databases, business intelligence software, and expert services. The Patent Asset Index is also used by major companies to illustrate the strength of their patent portfolios in annual reports and further investor communication.
How the Patent Asset Index is calculated?
The Patent Asset Index is calculated on the patent portfolio level. It is the sum of the Competitive Impact of all patent families in that portfolio. It can be calculated for an entire portfolio of a company, for a set of patent families belonging to a given technology, or for any other population of patent families.
The Competitive Impact is calculated on the patent family level and represents the relative business value of each patent family. It is obtained for each patent family by multiplying the → Technology Relevance (the technical value based on the number of citations a patent family has received) and the → Market Coverage (the market value calculated based on the GNI of all authorities in which the patent family is active). Thus, active patent families have a Competitive Impact that is higher than zero, while the Competitive Impact of inactive patent families is always zero.
Since the Patent Asset Index is the sum of the Competitive Impact of all families in a portfolio, the Patent Asset Index of only one patent family equals the Competitive Impact of this patent family.
You can learn more about the analysis method in the corresponding scientific article:
- Ernst, H., Omland, N. (2011): The Patent Asset Index – A New Approach to Benchmark Patent Portfolios. World Patent Information 33, pp. 34–41.
For further details, you can also refer to the following patent: