Especially Quantitative Analysts from banks, investment companies or financial services providers are looking for uncorrelated, alternative data, especially when it comes to assess technical values and the potential of technical companies. The extent to which patent values are a more meaningful and independent indicator in contrast to RnD expenses was published in a recently published White Paper by InTraCoM GmbH.
In the analysis, the R&D expenditures of companies were considered and ranked. The result is a list of stock-listed companies and their R&D expenditure in relation to their total assets. In a second analysis, the same companies were examined with respect to their patent portfolio values. Again, a ranking of the companies by their patent portfolio values was also made in relation to their assets (relative patent portfolio value). The two rankings differed considerably in most cases. In a correlation analysis, the degree of correlation between these two generated ratios were measured.
Conclusion: Although there is a correlation between the two indicators R&D expenditure/assets and patent value/assets, this dependency is extremely weak and hardly significant.
The patent values were valued using the indicator-based market analogy method of InTraCoM. All data were collected using the business information platform Orbis IP (https://orbisip.bvdinfo.com).
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