MODULE 2 · LESSON 1 / 5

Momentum Index™ — formula and interpretation

⏱ 12 min

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The 4 components of the Momentum Index™

The Momentum Index™ is not an arbitrary score — it is computed from four real analytical factors, each capturing a different dimension of innovation dynamics.

#ComponentWhat it measuresStrategic interpretation
1Filing CAGRCompound annual growth rate of patents filed over 3–5 yearsStrongest signal — indicates durable structural acceleration
2S-curve positionWhere the field sits on its adoption curve (emergence → saturation)Captures the maturity of the innovation trajectory
3Recent YoY growthAverage year-over-year growth rate over the last 3 yearsCaptures recent acceleration beyond the long-term trend
4Filing volumeTotal number of patents, log-normalizedWeights the signal's reliability — a large volume reinforces it

Methodological note

CAGR carries the heaviest weight (0.35) because it captures longitudinal dynamics; S-curve position (0.30), recent YoY growth (0.20), and volume (0.15) complete the signal.

The 3 labels — when do they apply?

The Momentum Index™ produces one of the three following labels, derived directly from the thresholds defined in the analytical system.

HIGH
70–100
Sustained acceleration — potential investment signal
MEDIUM
45–69
Moderate growth — monitor the trend over 12 months
LOW
0–44
Stagnation or decline — caution required

⚠ Common pitfall

HIGH momentum ≠ guaranteed investment. A technology in the mature phase with a HIGH Momentum Index™ can mean a rebound or a trap — the lifecycle context is indispensable.

Common pitfall — isolated spike ≠ sustained momentum

A new regulation, a court ruling, or a patent war between two players can generate a one-year filing spike — without reflecting genuine technological momentum.

Real momentum requires 3 consecutive years of sustained growth in CAGR. An isolated spike followed by stagnation often produces a MEDIUM score despite the appearance of acceleration.

How to verify

1Open the report → Momentum Analysis section
2Check the sparkline: 3+ years of gradual rise = reliable sign
3Check recent YoY growth: is it holding over the last 3 years?
4If the spike is isolated to a single year → likely attributable to an external event

CRISPR case — real acceleration

CRISPR gene editing is a perfect illustration of authentic HIGH momentum. The reference dataset contains 197 patents, positioned in the acceleration phase with an Openness Score™ in the CONTESTED band (5579).

🧬

CRISPR Gene Editing

Case study — verified acceleration

Dataset

197 patents

Lifecycle

acceleration

Openness Score™

CONTESTED (55–79)

Observed signal

HIGH Momentum — 2 years ahead of the press

Key insight: The Momentum Index™ showed a HIGH signal on CRISPR while mainstream media coverage was still limited. This kind of early directional signal illustrates the value of patent data — it can reflect R&D intensity ahead of the media consensus, depending on dataset coverage.

Momentum N/A — what it means

FR

Momentum N/A n’est pas une erreur. C’est une décision de qualité analytique : Stratensight refuse de calculer un CAGR sur une fenêtre temporelle insuffisante plutôt que de produire un chiffre peu fiable. Solution : étendre la période à 10 ans ou All.

EN

Momentum N/A is not an error. It is an analytical quality decision: Stratensight refuses to compute CAGR on insufficient temporal data rather than producing an unreliable figure. Solution: extend period to 10 yr or All.

Key takeaways from this lesson

  • Momentum Index™: 4 components — CAGR (0.35), S-curve (0.30), recent YoY (0.20), volume (0.15)
  • Labels: HIGH (70–100) · MEDIUM (45–69) · LOW (0–44)
  • An isolated spike ≠ real momentum — it takes 3+ years of sustained growth
  • HIGH momentum ≠ guaranteed investment — always cross-check with the lifecycle

QUIZ DE VALIDATION

1. A Momentum Index™ of 40 maps to which label?

2. Which component has the greatest impact on the Momentum Index™?

3. Is a one-year filing spike enough to conclude a HIGH Momentum?

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Stratensight provides patent intelligence signals, not legal opinions or freedom-to-operate assessments. Not a substitute for IP counsel.