ABSTRACT

The economic value of a patented technology is ultimately determined by the convenience brought by the patented technology to its users or consumers. The convenience, described by the term function and effectiveness, is measurable in some degree. The quantitative analysis of patents'function and effectiveness is to make patent literature play more active roles in lots of decision situations, such as technology trade, R&D project management and technology-based financing. This book first introduces how to collect the information on patents'function and effectiveness and how to measure it. Then a mathematical model is constructed to show how enterprises choose technologies based on patent information, especially the quantitative information on patents'function and effectiveness. This model also synthetically considers the influence of patents'function and effectiveness on consumers'utility, market demand, production cost and interaction with competitors. Next, various visualization tools incorporating quantitative information on patents' function and effectiveness are introduced. With examples, these tools are shown how to be used. Among these tools is there a new type of patent map, which is depicted by measuring patents'function and effectiveness with continuous numbers. Finally, it is demonstrated how to make use of the quantitative information on patents'function and effectiveness in some practical decision situations, such as patent valuation, firms' strategic management, R&D management and merger &acquisition decisions. The application of this quantitative information to technology trade, patent operation and venture investment decisions is also explored.