Appropriability and basicness of R&D: Identifying and characterising product and process inventions in patent data.

We present a database that classifies all patent applications filed at either the United States Patent and Trademark Office (USPTO) or the European Patent Office (EPO) as being either product patents, process patents or 'mixed patents'. We use the share of claims that refer to either product or process inventions which allows to classify all patent applications along a continuum of pure process patents and pure product patents. We find that process-oriented patents draw more on previous knowledge, are more original and more radical than product patents. Lower breadth of protection is positively associated with pure process patenting, whereas product and mixed variants can be protected more broadly. This characterisation uncovers heterogeneity of patented inventions that allows for a more sophisticated use of patent statistics. It can improve the accuracy of analyses, but also reveal new aspects related to property rights.