Scherer, Frederic M. Harhoff, Dietmar Vopel, Katrin
Year of Publication:
ZEW Discussion Papers No. 97-30
Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim
We explore the tail of patented invention value distributions by using value estimates obtained directly from patent holders. The paper focuses on those full-term German patents of the application year 1977 which were held by West German and U.S. residents. The most valuable patents in our data account for a large fraction of the cumulative value over all observations. Several tests are conducted to pin down more precisely the nature of the high-value tail distribution. Among the Pareto, Singh-Maddala and log normal distributions, the log normal appears to provide the best fit to our patented invention value data.