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*Egan , Edward J. (20112012), "The Economics of Patent Citations: MeasuresStartup Commercialization Strategy, Value, Meanings and Implications Success", presented at "Patent Statistics for ResearchDecision Makers", Preliminary DraftUSPTO, November 15-17th 2011, Alexandria, Virginia. ==Abstract== We use three important outcomes for startup firms to shed light on the underlying economic meaning of patent citations; and in turn we use our new understanding of patent citations to reveal how a startup's technology influences its commercialization strategy, likelihood of success, and value when successful. Using samples that almost comprise the population of successful startups and failed venture capital backed firms, UC Berkeleywhich experienced their liquidity event between 1986 and 2006, and a reference dataset of all U.S. patents from 1963-2006, we find that patent citations contain useful economic information that reveals complementary and substitution effects in the innovation-based relationships that startups have with other patent-holders. Our results provide a coherent picture of start-ups that achieve initial public offerings patenting more radical inventions and acting as a force for creative destruction. The substitution effect of some patents also resolves a puzzle in the literature of why receiving more citations does not make patents more valuable for certain patent-holders.

*[[Media:Egan_Egan (2012) - The Economics of Patent Citations (Jan 31st).pdf|Download PDF]] (Note: this links to the current version released on Jan 31st 2012)*[[Media:Egan (2011)_-_The_Economics_of_Patent_Citations_The Economics of Patent Citations (Presentation at Innovation Seminar).pdf| Presentation for the Berkeley Innovation Seminar]]*[[Media:Egan(2011)-EconomicImplicationsofPatentCitations-_Preliminary_DraftAnimated20mins.pdf‎ppt|Download PDFPresentation for the USPTO Patent Statistics Conference]] ==Status==