Patent portfolio efficiency using Data Envelopment Analysis: Case of wind power market

Predicting the success of emerging industries is difficult due to the uncertain response of markets and mixed nature of technological signals. In order to ensure success, firms attempt to block competitors through patents or achieve standardization of their technologies. This paper uses Data Envelopment Analysis to measure the efficiency of patent portfolios held by firms in the wind power market. The value indicators are measured using the case firms´ patent data from the EPO worldwide PATSTAT database. The value indicators are then used as outputs to measure the relative efficiencies of the patenting firms. These indicators can be used by technology managers to assess the quality of patents, thus providing a basis for patent pricing and licensing. The results can help investors determine the future success of firms in the uncertain environment of emerging industries. R&D managers can benefit by evaluating the strengths and weaknesses of their patent portfolio.