Technological diversity of patent applications and decision pendency

Abstract

This study focuses on the duration of the patent examination process to develop a theoretical framework that explains how the effect of an important characteristic, technological diversity of patent applications, influences the duration of patent examination. Drawing on an information-processing perspective, we propose a U-shaped relationship between the level of technology diversity of a patent application and the pendency time for patent office decisions, including both grants and refusals. We run Cox proportional hazard models on a sample of all pharmaceutical patent applications filed between 1985 and 2017 at China's State Intellectual Property Office. Our results support the hypothesized U-shaped relationship between technology diversity and decision pendency. We also theorize and find partial support for the moderating effects of patent agency and inventor team size. The implications of these findings are discussed.