The value of Chinese patents: An empirical investigation of citation lags

- We investigate the value of Chinese patents using a novel measure (citation lag)
- We show that Chinese patents have a lower patent value than patents from the US, Europe, Japan, and South Korea
- Our empirical analysis comprises a unique data set of 60,000 patents with priority years between 2000 and 2010.
- Value is moderated by the number of patent references, the number of patent claims, and for more recent patents.
- The gap between Chinese patents and international patents might narrow down in the near future.

China has been experiencing a substantial growth in patent applications. But is this increase accompanied by a similar increase in patent value? To assess this question, we examine the citation lag of Chinese patents as a proxy of patent value in comparison with patents from the US, Europe, Japan, and Korea. Our empirical analysis comprises a unique data set of 60,000 patents with priority years between 2000 and 2010. Utilizing Cox regressions, our results show that Chinese patents suffer from a large citation lag in comparison to international patents, indicating a lower value. This is especially true for patents filed domestically. However, we find empirical support for an increasing patent value in more recent patents. China shows a strong dynamic in the field of patenting and our results suggest that the gap between Chinese patents and international patents might narrow down in the near future.