Truncation bias corrections in patent data: Implications for recent research on innovation

B-Tier
Journal: Journal of Corporate Finance
Year: 2017
Volume: 44
Issue: C
Pages: 353-374

Authors (3)

Dass, Nishant (not in RePEc) Nanda, Vikram (University of Texas-Dallas) Xiao, Steven Chong (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We review the effectiveness of various adjustment methods in correcting the truncation-bias in patents data and the implications for existing studies. The NBER patents-database was recently updated, extending the sample from 2006 to 2010. The updated sample is largely free of truncation-bias over the period covered by the NBER-2006 sample, allowing us to evaluate the bias-adjustment methods. We find that existing adjustments perform poorly towards the end of NBER-2006 sample. We re-examine multiple studies from the recent literature on innovation and show that findings based on the last few years of NBER-2006 data are not supported in the updated patents-database.

Technical Details

RePEc Handle
repec:eee:corfin:v:44:y:2017:i:c:p:353-374
Journal Field
Finance
Author Count
3
Added to Database
2026-01-26