Company Events & EarningsExtended setexperimental liveNew

Patent Velocity Acceleration

Updated monthlyData needs: mediumlong onlylong short

2013

Cohen-Diether-Malloy 2013 RFS -- Misvaluing Innovation.

In plain terms

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

How it works

Acceleration in patent application filing rate (publications per quarter, change in slope) signals increasing R&D output intensity before the financial statements capture it. The market undervalues rising innovation velocity, particularly in mid-cap names where analyst coverage is thinner.

Live results

0 times picked on its own · 1 times inside a blend (1 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 1 such blended picks (1 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)

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Data dependencies

Daily prices
Adjusted-close OHLCV for every US-listed ticker; primary price feed.
Uspto patent applications
A data feed this strategy reads, refreshed on its normal schedule.

Expected edge

Reported return: ~3-5% ann. long-leg
Tested over: 1980-2006 (Cohen-Diether-Malloy)

Patent velocity acceleration: ~3-5% annual alpha over the 12-month window post-signal.

Related families

Kpss Inno Value MomentumCompany Events & Earnings

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

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 Patent Velocity Acceleration on alphactor.ai

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