# Long-run dynamics of the U.S. patent classification system

## TL;DR

This paper investigates the long-term evolution of the U.S. patent classification system, revealing significant volatility, reclassification patterns, and their implications for understanding technological change.

## Contribution

It provides new insights into classification system dynamics, including the evolution, size distribution, and reclassification patterns of patent classes over time.

## Key findings

- The number of patent classes has changed significantly over time.
- Class sizes follow an exponential distribution with no direct link to age.
- Reclassified patents are more highly cited than non-reclassified ones.

## Abstract

Almost by definition, radical innovations create a need to revise existing classification systems. In this paper, we argue that classification system changes and patent reclassification are common and reveal interesting information about technological evolution. To support our argument, we present three sets of findings regarding classification volatility in the U.S. patent classification system. First, we study the evolution of the number of distinct classes. Reconstructed time series based on the current classification scheme are very different from historical data. This suggests that using the current classification to analyze the past produces a distorted view of the evolution of the system. Second, we study the relative sizes of classes. The size distribution is exponential so classes are of quite different sizes, but the largest classes are not necessarily the oldest. To explain this pattern with a simple stochastic growth model, we introduce the assumption that classes have a regular chance to be split. Third, we study reclassification. The share of patents that are in a different class now than they were at birth can be quite high. Reclassification mostly occurs across classes belonging to the same 1-digit NBER category, but not always. We also document that reclassified patents tend to be more cited than non-reclassified ones, even after controlling for grant year and class of origin.