Investment decisions and passive portfolio construction utilizing patent analytics : a multi-case study on COVID-19 treatment technologies

Guderian, Carsten C.; Posth, Jan-Alexander; Grob, Linus

doi:10.1016/j.qref.2023.08.002

Please use this identifier to cite or link to this item: https://doi.org/10.21256/zhaw-29696

Publication type:	Article in scientific journal
Type of review:	Peer review (publication)
Title:	Investment decisions and passive portfolio construction utilizing patent analytics : a multi-case study on COVID-19 treatment technologies
Authors:	Guderian, Carsten C. Posth, Jan-Alexander Grob, Linus
et. al:	No
DOI:	10.1016/j.qref.2023.08.002 10.21256/zhaw-29696
Published in:	The Quarterly Review of Economics and Finance
Volume(Issue):	92
Page(s):	66
Pages to:	87
Issue Date:	25-Aug-2023
Publisher / Ed. Institution:	Elsevier
ISSN:	1062-9769 1878-4259
Language:	English
Subjects:	Alternative beta/data; COVID-19; Investment decision; Patent analytics; Portfolio construction
Subject (DDC):	332.6: Investment
Abstract:	The question of which stocks to buy remains at the heart of every investment decision. New, non-priced information sources and rationales linking such information to financial theory are constantly investigated. Patent metrics are often relied upon to capture technological change. Prior research detected positive corporate performance implications when relating corporate patent metrics to corporate financial performance indicators like stock prices. However, largely anecdotal evidence from the corporate sector on building investment strategies based on such patent metrics exists. In this multi-case study comprising COVID-19 treatment technologies, we select investment targets from a pool of companies previously identified based on patent analytics via patent portfolio sizes, average patent qualities, and patent portfolio strengths. Casting our thematic investment choice into passively constructed portfolios and benchmarking the portfolios' performance against the sector and three established global benchmarks, we find that relying on patent information in the selection process results in substantial outperformance compared to these global benchmarks. This finding holds true in the short- and mid-term. These findings provide ample opportunities for future research and may guide investment, managerial, and policy decision-makers in crafting promising investment strategies.
URI:	https://digitalcollection.zhaw.ch/handle/11475/29696
Fulltext version:	Published version
License (according to publishing contract):	CC BY 4.0: Attribution 4.0 International
Departement:	School of Management and Law
Organisational Unit:	Institute of Wealth & Asset Management (IWA)
Appears in collections:	Publikationen School of Management and Law

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Guderian, C. C., Posth, J.-A., & Grob, L. (2023). Investment decisions and passive portfolio construction utilizing patent analytics : a multi-case study on COVID-19 treatment technologies. The Quarterly Review of Economics and Finance, 92, 66–87. https://doi.org/10.1016/j.qref.2023.08.002

Guderian, C.C., Posth, J.-A. and Grob, L. (2023) ‘Investment decisions and passive portfolio construction utilizing patent analytics : a multi-case study on COVID-19 treatment technologies’, The Quarterly Review of Economics and Finance, 92, pp. 66–87. Available at: https://doi.org/10.1016/j.qref.2023.08.002.

C. C. Guderian, J.-A. Posth, and L. Grob, “Investment decisions and passive portfolio construction utilizing patent analytics : a multi-case study on COVID-19 treatment technologies,” The Quarterly Review of Economics and Finance, vol. 92, pp. 66–87, Aug. 2023, doi: 10.1016/j.qref.2023.08.002.

GUDERIAN, Carsten C., Jan-Alexander POSTH und Linus GROB, 2023. Investment decisions and passive portfolio construction utilizing patent analytics : a multi-case study on COVID-19 treatment technologies. The Quarterly Review of Economics and Finance. 25 August 2023. Bd. 92, S. 66–87. DOI 10.1016/j.qref.2023.08.002

Guderian, Carsten C., Jan-Alexander Posth, and Linus Grob. 2023. “Investment Decisions and Passive Portfolio Construction Utilizing Patent Analytics : A Multi-Case Study on COVID-19 Treatment Technologies.” The Quarterly Review of Economics and Finance 92 (August): 66–87. https://doi.org/10.1016/j.qref.2023.08.002.

Guderian, Carsten C., et al. “Investment Decisions and Passive Portfolio Construction Utilizing Patent Analytics : A Multi-Case Study on COVID-19 Treatment Technologies.” The Quarterly Review of Economics and Finance, vol. 92, Aug. 2023, pp. 66–87, https://doi.org/10.1016/j.qref.2023.08.002.