Using Bibliometric Indicators from Patent Portfolio Valuation as Value Factor for Generating Smart Beta and Index Products

Abstract

This paper goal is to present the results the use of patent valuation indicators as alternative data which can generate a value factor which is suitable to design financial products. Based on different patent value indicators which address the areas 'assignee', 'technology' and 'market' an 'IP portfolio index' was designed and backtested with real market data. The outperformance of the IP portfolio index is shown in the current paper.