MDB Capital report-worth a read

by Andrew Watson on 22 April 2010

There is a very interesting post across at Joff Wild’s IAM blog highlighting a study by MDB Capital Group on the relationship between patent quality and stock performance. http://www.iam-magazine.com/blog/Detail.aspx?g=f4579e1e-62cf-40e3-8b89-4bb204e1b54d

I hadn’t heard the term IP investment bank since Ocean Tomo days and what MDB look to be doing is in line with what you’d expect of that description.  They look (very helpfully) to be finance and business people who’ve reversed into IP as being a key business metric as opposed to IP people moving outwards. An intriguing model and looks like one to watch.

The first paper I read on the topic was Deng, Lev and Narin’s 1998 paper which you can find here, www.stern.nyu.edu/~blev/s&t.doc.

Helpfully the MDB paper seems to validate and add to the Deng, Lev and Narin findings. For the IP world though the findings, as Joff says, should not really be a surprise.

MDB looks like a real business to watch. I don’t believe that we’ve seen anything like this in Europe so far. But if the model can be made to work in the US, it should at some point translate and migrate over here.

Fascinated.

{ 2 comments… read them below or add one }

Rachel 04.23.10 at 10:28 pm

This sounds exactly like the stuff that Jonathan Barney at OceanTomo PatentRatings is doing. Are you sure this is original material?

Andrew Watson 04.27.10 at 11:02 am

Rachel. I know Jonathan from his OT days in Chicago and heard a rumour that he had relocated to Paris to work on a second generation of the patent ratings tools he developed for OT. I hadn’t seen any public statements on what he is doing. I don’t know of any published studies before the Deng, Lev and Narin study…though I’ve not looked in detail. That goes back to 1998 and I agree that MDB seems to base itself on that study. Is there any public statement on Jonathan’s recent activities?

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