Valuation of patent - A real options perspective

Ming-Cheng Wu, Chun Yao Tseng

Research output: Contribution to journalArticle

22 Citations (Scopus)

Abstract

Both the theoretical model and the empirical analysis methods are examined for valuing patents from the real options perspective. This study not only sets up a real options approach for evaluating patent to conform to the main sensitivity analysis of patent activities, but also establishes an empirical method about valuing patents by a panel data. Cross-sectional and time-series data from 101 Taiwanese electronic firms between 1993 and 2002 are employed for the fixed effects analysis in the panel data model. This study concludes the consist results from the theoretical model and empirical analysis. That is, the patent value increases with increasing the underlying asset, time to maturity and risk-free rate.

Original languageEnglish
Pages (from-to)313-318
Number of pages6
JournalApplied Economics Letters
Volume13
Issue number5
DOIs
Publication statusPublished - 2006 Apr 15

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Real options
Patents
Empirical analysis
Panel data
Assets
Time series data
Risk-free rate
Fixed effects
Sensitivity analysis
Empirical methods
Patent value
Time to maturity

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Cite this

Wu, Ming-Cheng ; Tseng, Chun Yao. / Valuation of patent - A real options perspective. In: Applied Economics Letters. 2006 ; Vol. 13, No. 5. pp. 313-318.
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Valuation of patent - A real options perspective. / Wu, Ming-Cheng; Tseng, Chun Yao.

In: Applied Economics Letters, Vol. 13, No. 5, 15.04.2006, p. 313-318.

Research output: Contribution to journalArticle

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