Estimates of the Value of Patent Rights in Great Britain and Ireland, 1852- 1876

Abstract

Parameters of the distribution of the value of patent rights in Britain and Ireland for the 1852-76 period are estimated, and compared with similar estimates by Schankerman and Pakes (1986) for the 1950-76 period. Market variables of the earlier period have a low ability, but those of the later period a high ability, to explain fluctuations in the value of patent rights. Aggregate patent rights have more lower-valued patents in the earlier period. In the earlier period there was no trade-off between quantity and 'quality' of patents, but in the later period there was. Aggregate value of patent rights increased relative to gross fixed capital formation, from 1870 to 1970, by approximately 100 percent. A greater amount of R&D effort helps to explain many of the differences found between the two periods. Copyright 1994 by The London School of Economics and Political Science.