A Citation-Based Patent Evaluation Framework to Reveal Hidden Value and Enable Strategic Business Decisions

Abstract

Patent evaluation methodologies enable firms to make informed strategic business decisions by associating and revealing hidden information surrounding a patent. However, the value of a patent depends on a firm's capabilities and strategic direction; therefore, a patent evaluation requires the information to be properly related and aligned with a particular business consideration. This article reviews the literature on citation-based patent evaluation methodologies and develops a framework to help managers and entrepreneurs identify strategic groups of business considerations. The framework shows how categories of information can be interrelated to different strategic groups of business considerations, thereby providing a competitive advantage to the evaluating firm. The article includes recommendations for managers and entrepreneurs to help them make citation-based patent evaluation an ongoing business practice to enable strategic decision making.