ABSTRACT
This chapter contributes the research agenda on proposing novel timely indicators of innovation activities (OECD 2013). The author devised a composite value index that aggregates information from several patent indicators regarding patent breadth and technology potential and background of the patent, and filing and procedural aspects of the patent. Beforehand these indicators are validated with respect to market value of patents. The composite value index summarizes effectively the variability of the indicators taken separately: when he regress the composite index against the market value of patents, the relative reduction in goodness of fit of the predictive model is only about 10 percent. Robustness analyses of the composite index with estimates of patent value from the Gambardella's et al dataset are also reported. Further, estimating the composite value index using the overall EPO dataset provides informational improvements compared to the case of reducing the estimation of the index by the mean of a smaller scale dataset.
