Title: Patent prices and influencing factors from the perspective of computable general equilibrium modelling

Authors: Yuan Tao

Addresses: Department of Intellectual Property Management, Nanjing University of Science and Technology, Nanjing 210094, China

Abstract: The mainstream income method of patent valuation remains subjective; therefore, further theoretical exploration of patent valuation is essential. This study examines the price of patent rights and the factors influencing it using a linear computable general equilibrium model. The model is adapted to describe technological progress over time. The model can also take into account the quantity of products granted, the patent royalty per unit of output, the uniform equilibrium interest rate and the changes in these three variables over time. Using the discounted cash flow method and the traditional income approach, the proposed model can derive the price of patent rights using these variables. A new market approach is also developed based on this model. According to this model, patent prices are influenced by the nature of patent, the technologies used by the production sectors, the preferences of households (consumers) and the size of the population.

Keywords: patent price; computable general equilibrium; patent valuation; technological progress; income approach; market approach.

DOI: 10.1504/IJIPM.2025.150054

International Journal of Intellectual Property Management, 2025 Vol.15 No.5, pp.508 - 529

Received: 13 Dec 2023
Accepted: 20 Oct 2024
Published online: 28 Nov 2025 *

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