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PatentSight® Patent Asset Index™

An objective measure of global technological strength and influence

The Patent Asset IndexTM Methodology

LexisNexis PatentSight_Infographic_Patent Asset Index_A4_3.2-01


The Patent Asset Index of a patent portfolio is defined as the aggregate strength of all the patents the portfolio contains. The strength of each individual patent is measured by its Competitive Impact. The PatentSight® Competitive Impact consists of two dimensions: PatentSight® Technology Relevance and PatentSight® Market Coverage.

PatentSight® Technology Relevance

PatentSight® Technology Relevance is based on forward citations. Patent offices investigate all patent applications to reveal on which prior patents new inventions are based. If a patent is of significance for the technical development in a field, subsequent patents will build on it and patent offices will frequently cite it as prior art.

Technology Relevance measures whether a patent has been more often cited than other patents from the same technology field and year. The total number of patent citations received not only depends on the relevance of the patented invention, but also on the time that has passed since the patent was published. Patents only recently published tend to have received much less citations than older patents. The time-dependency of citations is corrected by dividing the number of citations received by a patent by the average number of citations received by all patents published in the same year.

Technology Relevance also considers that international patent offices follow different citation rules.

PatentSight® Market Coverage

The Market Coverage indicates the size of the global market which is protected by a patent family. An invention has a higher business value if the patent rights cover more international markets. The Market Coverage is measured as the size of the markets in which a patent family is protected benchmarked to the world's largest national market – the USA. In this context, the gross national income (GNI) of a country is used as a proxy for the relative size of each national market . A Market Coverage of 2 means that the protected markets are, in total, twice as large as the US-market alone.

Thus, the scope of international patent protection is an important indicator of patent value. Market Coverage is calculated based on granted and pending, hence valid patents per country adjusted for each market’s size. The size of each market is estimated using the countries’ gross national incomes relative to the US gross national income as the largest global economy. 

PatentSight® Competitive Impact

The economic value of the patents as measured by its Technology Relevance and Market Coverage. PatentSight® Competitive Impact is stated relative to the other patents in the same field (e.g. a value of three means that the patent is three times as important as the average patent in the field).



Excellent data quality is the foundation of reliable analyses

To guarantee the reliability of analyses based on the Patent Asset Index, PatentSight maintains a high quality database. Our patent data is harmonized and integrated from more than 90 patent offices and complementary sources that include a range of relevant information such as litigation activity, technical standards, medical uses etc. 

Our data quality is achieved by employing a combined software- and human research-based process to curate, harmonize and integrate the data. Continuous data validation studies with our clients show that the database we maintain reliably identifies all worldwide patents on the same invention and that we determine the actual current owner and legal status of each patent with exceptional precision.

Scientific validation of the methodology

The Patent Asset Index methodology is based on many years of scientific research and validation studies. It is published in an academic journal for review (Ernst and Omland, 2011). It was concluded in the study that patents with high Competitive Impacts do in fact possess higher values when compared to a randomly chosen control group of patents.

As stated above, the indicators may be calculated for any selected group of patents, for e.g., single patents, a firm's patents belonging to single business units, an entire firm's portfolio, multiple firms’ portfolios, patents from entire technological fields or countries or defined by any other criteria for selection.

Multiple use cases of enabling strategic decision-making

Based on the Patent Asset Index, PatentSight offers a Business Intelligence solution that helps board members, investors, portfolio managers, technology scouts, patent professionals and other stakeholders to understand and increase the value of patent portfolios and to uncover trends and disruptive innovation worldwide.

PatentSight’s solutions are used for strategic and operational decision making by leading companies in chemicals, telecommunication, auto-motive, electronics, mechanical engineering, food processing, logistics and other industries.

It has also been used by the European Commission to validate merger cases, such as the landmark merger between Dow and DuPont in 2017.

Learn more about the various real-world application possibilities of the Patent Asset Index in our sections below. 

The Patent Asset Index in practice

The Patent Asset Index allows you to identify leading or even disruptive technologies from the plethora of patents out there. This holds true irrespective of whether you are analyzing a mature technology field, dominated by multinationals, or an emerging space pioneered by start-ups. You can spot a small start-up with a disruptive innovation early on ‒ even if dozens of other players apply for many more patents in the same space.

Early identification of disruptive players with advanced patent analytics

What if it was possible to spot disruptive trends early on, to better prepare to capitalize on market shifts?

Read Use Case →

The Patent Asset Index clearly reveals the strength of the Apple portfolio within the Smartwatch market

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Reveal insights into any patent portfolio

R&D Strategy

R&D Strategy

Improve innovation with a clearly defined business strategy that is connected to IP and alerts for new entrants and potential partners.
Competitive Intelligence & Benchmarking

Intelligence & Benchmarking

Base decision-making on true patent portfolio strength and quality indicators, while relying on industry proven KPIs to track  your competitors' progress.
Portfolio Optimization

Portfolio Optimization

Answer key questions to define international patent filing strategy, increase portfolio efficiency and identify competitive strengths and weaknesses.
Disruptive Technology Scouting

Disruptive Technology Scouting

Identify disruptive innovations and promising startups with patent analytics to help you gain a competitive edge.
Risk Assessment

Risk Assessment

Stay one step ahead of your competition, disruptive technologies, important patent activity in China and/or NPE threats. Efficiently assess the value or risk of acquisition targets.

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Licensing & Monetization

Licensing & Monetization

With analytics on all patent portfolios in all technologies, you can both evaluate your most valuable patents for licensing and even identify potential licensees.

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Our Clients & Partners

Industry leaders trust PatentSight to illustrate the strength of their patent portfolios in annual shareholder reports and other stakeholder communications.


The Patent Asset Index™ provides an accurate, overall view of the impact and efficiency of an enterprise's investment in innovation.

- CTO, Dow Chemical



For the sixth time in succession, we headed the rankings in the Patent Asset Index™.

- BASF Annual Report



The group is very efficient in translating its research expenses into patents. That was confirmed by the Patent Asset Index™.

- Evonik Press Release



Quality has always had priority over quantity. This is shown for example by the Patent Asset Index™.

- Daimler Annual Report



We go far and beyond to deliver tailor made solutions that instantly add value

PatentSight Academy

PatentSight Academy

Access patent experts’ knowledge in advanced patent analytics with our brand-new educational program and become a part of the patent community in the frames of the PatentSight Academy.

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Business Intelligence Software

Business Intelligence Software

The powerful and easy-to-use analytics platform provides top management and professionals with quick and easy to understand answers in a variety of applications.

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Strategic Consulting

Strategic Consulting

Gain from the best-in-class strategic consulting expertise providing you with required background knowledge, in-depth explanations of certain analyses and recommendations for further actions.

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