Abstract: Innovation researchers currently make use of various patent classification schemas, which are hard to replicate. Using machine learning techniques, we construct a transparent, replicable and adaptable patent taxonomy, and a new automated methodology for classifying patents. We contrast our new schema with existing ones using a long-run historical patent dataset. We find quantitative analyses of patent characteristics are sensitive to the choice of classification; our interpretation of regression coefficients is schema dependent. We suggest much of the innovation literature should be carefully interpreted in light of our findings.
JEL Codes: K11, N24, N74, O31, O33
Cite as: Stephen D Billington, Alan J Hanna. ‘That’s classified! Inventing a new patent taxonomy’. Industrial and Corporate Change, Volume 30, Issue 3, June 2021, Pages 678–705.
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