At the 161st "Hedgework" event in Frankfurt this question was discussed. And what forecasts for the future can be derived from it.
Watch the video interview with Prof. Zagos:
Those who invest in their patent portfolio document their innovation-commitment, according to Prof. Andreas Zagos of InTraCoM GmbH to interested parties from the financial sector. If the patent values were high and ideally increased over the years, this would also document the innovative ability, i.e. the positive result of the R&D efforts.
According to Zagos, back tests of the last 10 years could clearly prove this. "This link is particularly relevant for those - technically oriented - companies for which patents are generally playing an important role," says the expert. Since patents and their portfolio value generally do not correlate with other, "typical" indicators of the financial sector, it is ideally suited as an early indicator. "This is also because potential products from inventions are typically only reflected in the balance sheet several years after the patent application has been filed.”
According to Zagos, the "IPalpha" indicator, which is based on patent values, company results and patent relevance, was developed specifically for the financial sector together with technical analysts and financial experts. It represents the best quantitative forecast indicator to date for technically oriented companies that have generated a significant alpha in all back tests. This means a significantly better performance than with comparable benchmarks, e.g. the respective benchmark index.