Company Events & EarningsExtended setexperimental liveNew

Kpss Inno Value Momentum

Updated monthlyData needs: mediumlong onlylong short

2017

Kogan-Papanikolaou-Seru-Stoffman 2017 QJE -- Technological Innovation, Resource Allocation, and Growth.

In plain terms

Companies where the economic value of each new patent is rising (not just the count) compound innovation quality in a way the market underprices.

How it works

KPSS patent innovation value (stock-market-implied value of each patent at grant) is a forward-looking measure of patent economic value. Momentum in KPSS value (improvement in average patent quality over trailing 4 quarters) predicts future stock returns and revenue growth.

Live results

19 times picked on its own · 29 times inside a blend (25 beat the stock) · updated 2026-07-06

This strategy is a frequent ingredient in blends that combine a few strategies on one stock. It has contributed to 29 such blended picks (25 of which beat simply holding the stock). Picking it on its own is only one of the ways it shows up.

How its picks scored vs. buy & hold

Each pick is graded on a recent year it was never tuned on, against simply owning the same stock

Where its edge concentrates

Share of picks in each company-size group that beat buy & hold

How often it trades

Active vs. patient. Bars on the left mean it waits for rare setups; bars on the right mean it trades often

Return vs. buy & hold

How much each pick beat or trailed simply owning the stock over the test year (extreme microcap moves trimmed)

Loading substrate evidence…

Data dependencies

Daily prices
Adjusted-close OHLCV for every US-listed ticker; primary price feed.
Patent innovation value
Kogan-Papanikolaou-Seru-Stoffman patent dollar-value series.

Expected edge

Reported return: ~4-6% ann.
Tested over: 1926-2010 (KPSS)

KPSS innovation value momentum: ~4-6% ann. over 6-12 month holding period.

Related families

Patent Velocity AccelerationCompany Events & Earnings

Companies whose patent filing rate is accelerating are investing more in innovation -- and the market is slow to price that in.

Innovative Efficiency TiltCompany Events & Earnings

Companies that generate more patents per R&D dollar outperform those that spend heavily on R&D but produce fewer high-value patents.

Explore Kpss Inno Value Momentum on alphactor.ai

See which tickers this family is currently firing on, with live signals and rankings.

Open universe with this filter →Browse all 573 families