Concordance and complementarity in IP instruments

ABSTRACT

This work investigates the relationship between proxies of innovation activities, such as patents and trademarks, and firm performance in terms of revenues, growth, and profitability. By resorting to the virtual universe of Italian manufacturing and service firms, this work provides a rather complete picture of the Intellectual Property (IP) strategies pursued by Italian firms, in terms of patents and trademarks, and studies whether the two instruments for protecting IP exhibit complementarity or substitutability. In addition, and to our knowledge novel, we propose a measure of concordance (or proximity) between the patents and trademarks owned by the same firm and we then investigate whether such concordance exerts any effect on performance. The results suggest that while patents and trademarks independently exert a relevant impact on firm performance, there is no convincing evidence in favour of a complementary role of IP.     

Open,Semi-Open and Closed Innovators: Towards an Explanation of Degree of Openness

There is much controversy in the literature over the relationship between the openness of firms' innovation strategies and firm characteristics such as size, R&D intensity and sector. We argue that the controversy arises because, both theoretically and empirically, only a binary, open vs. closed, strategy has been considered. In this paper, we distinguish among three firm strategies: open, semi-open and closed, drawing upon a panel of Spanish firms (2004–2006) using data from Community Innovation Survey (CIS)-type surveys, and two different indicators of openness. Our results show that open innovators are smaller and less R&D intensive than semi-open ones, although larger and more R&D intensive than closed innovators. These results reduce some of the controversies, and show that two conflicting forces, absorptive capacity and a “need” effect, are at stake in open innovation strategies.     

Innovation strategies,external knowledge and productivity growth

This paper studies firms′ capability to recombine internal and local knowledge. It measures the outcome in terms of total productivity growth. Using Swedish data on commuting time for face-to-face contacts across all 290 municipalities, we employ a time-sensitive approach for calculating localized knowledge within a municipality and and its close neighbors. Internal knowledge is captured by register data on firms’ innovation intensity. The two sources of knowledge are modeled in a production function setting by discrete composite variables with different combinations of input factors. Applying the model on Swedish firm level panel data, we find strong evidence of differences in the capacity to benefit from external knowledge among persistent innovators, temporary innovators and non-innovators. The results are consistent regardless of whether innovation efforts are measured in terms of the frequency of patent applications or the level of R&D investment.     

The Catalysing Role of In-House R&D in Fostering Complementarity Among Innovative Inputs

While several studies have investigated the relationship between internal and external sources of innovation, no clear-cut result has emerged so far, suggesting the possibility that the nature of such interaction—far from being an absolute property of the innovative process—may instead be a relative one, contingent upon the nature and the level of innovative inputs a firm has invested in. Using microdata from the third Italian Community Innovation Survey, we test under what conditions the nature of the interactions between four different innovative inputs (internal and external R&D, embodied and disembodied technological acquisition) is one of complementarity or substitutability. Two are the main findings of our study: (i) internal R&D and embodied technological acquisitions turn out to be complementary only after a minimum threshold of in-house R&D expenditure has been overcome, being substitutive otherwise; (ii) investing in internal R&D also affects the nature of the relationships between alternative external sources of innovation, whose interaction proves to be complementary only for firms that invest in internal R&D.     

Driving business performance: innovation complementarities and persistence patterns

Complementarities between technological and non-technological innovation are crucial determinants of firm performance. Although innovation complementarity has been extensively tested in the empirical literature, it has not been analysed in conjunction with innovation persistence. This fact is mainly due to the lack of data sets able to provide adequate longitudinal information. The capacities to develop market-oriented behaviour and introduce new organisational innovations, together with technological innovation, are the drivers of a firm’s productivity and profitability. We find that these activities complement technological innovation and that their impact is greater when they persist over time, thus introducing a more general concept of innovation persistence. We present an empirical model based on a large new panel of Italian manufacturing firms covering the period 2000–2012 which enables us to determine the precise impacts of a firm’s innovative attitude, in a broad definition that incorporates non-technological innovation and persistence, on its productivity and profitability.     

Issues in measuring innovation

Innovation research builds on the analysis of micro level data describing innovative behaviour of individual firms. One increasingly popular type of data are Literature-based Innovation Output (LBIO) data. These are compiled by screening specialist trade journals for new-product announcements. Notwithstanding the substantial advantages, the eligibility of LBIO data for innovation research remains controversial. In this paper the merits of LBIO data are examined by means of comparative analysis. A newly built LBIO database is systematically compared with the widely used Community Innovation Survey. It shows that both databases identify similar innovators in terms of firm size, distribution across industries and degree of innovativeness: LBIO data can be considered a fully fledged alternative to traditional innovation data, highly eligible for innovation research.     

Innovation Strategies: Are Knowledge-Intensive Business Services Just Another Source of Information?

The objective of this paper is to contribute to the empirical literature on innovation strategies and services, by analysing the use of knowledge-intensive services, and their impact on innovation, in manufacturing firms. The analysis is carried out at the firm level, on the basis of a survey covering 804 manufacturing establishments in the Province of Quebec (Canada). We investigate the extent to which existing internal capabilities and their interaction with external sources of knowledge, in particular the use of knowledge-intensive business services (KIBS), affect the level of innovativeness of manufacturing firms. Then we examine the extent to which different innovation strategies, and the way KIBS are integrated into these, are associated with innovation. We show that manufacturing firms adopt a variety of innovation strategies, none of which preclude innovation, even introverted strategies whereby firms interact little with outside agents. However, those strategies that incorporate KIBS have a considerably greater chance of leading to innovation.     

Managing innovation networks in the knowledge-driven economy

Innovation has been widely recognized as the key driver of economic growth. However, in the knowledge-driven economy, the nature of innovation is changing. Both technologies and innovations are becoming more complex as the knowledge content has increased. Due to the amount of different knowledge domains, individual players cannot develop anymore all the competencies necessary to create innovation in the knowledge-driven economy. Successful innovators therefore join to form innovation networks that allow them to source flexibly competencies and to offer innovations that are complete solutions and not just products. The traditional linear model from research and development as a basis of innovations is thus shifting to a model with a wide network of sources and partners integrating complementary competencies. Managing innovation in such a network poses new challenges for companies as they need to adapt their way of working and develop?‘networking’?competencies. In this paper, success factors are derived that networks and companies need to adopt to create innovation. For the support of the management of such networks, the innovation roadmapping methodology is proposed. Previously only applied for innovation management in individual organizations, innovation roadmapping should be used as a means to identify and exploit ideas and to align the innovation efforts in the network.     

Early Experiences in Cross‐Disciplinary Education in Biomedical Technology Innovation at Stanford University*

This paper describes two new educational programs at Stanford that address some of the unique issues in teaching medical technology innovation and design. The first is a team‐based medical device design and prototyping course that is based on clinical immersion and “hands‐on” device prototyping. Medical device innovation at Stanford is further encouraged by means of a series of university‐wide competitions, called Invention Challenges, to invent solutions to defined clinical problems with the potential for real‐world impact.     

Reverse innovation,international patenting and economic inertia: Constraints to appropriating the benefits of technological innovation

In this paper we compare the role of outward-bound international patenting in “reverse innovation” and in conventional international modes of innovation. Through analysis of panel data from 148 countries over 18 years we reveal that, while all countries may in principle appropriate economic benefits from endogenous technological innovation by increasing their level of outward-bound international patenting, the ability of a country to do so may be hampered by the pre-existing level of its economy. We classify countries in to four strategic innovation quadrants—Slow Movers, Traders, Inventors and Cosmopolitans—based on the relative change over time in their competitiveness in international patenting and their per capita wealth. The mix of wealthy countries and less wealthy countries varies greatly between quadrants, with the wealthy countries dominating the Cosmopolitans quadrant and the less wealthy countries dominating the Slow Movers quadrant. We conclude that, for lower income countries to improve their success in appropriating the benefits of reverse innovation, innovators and would-be innovators based in those countries need to develop sophistication and prowess in international patenting strategy and intellectual property management tailored to the unique conditions of each country.     

Trademarks and the patent premium value: Evidence from medical and cosmetic products

The determinants of the premium value of patents for medical and cosmetic products are analyzed with respect to a complementary IP strategy such as trademarks. I discuss a novel method and database to gauge combinations of patent and trademark pairs regarding the same innovative project. The premium value is computed through a model of renewal decisions for the patent cohorts 1985–1990 that have been designated in the U.K. and Germany. After taking into the account several firm characteristics and patent indicators typically used in the literature, I find ample evidences that patent and trademark pairs are featured by higher valuations.     

技术创新及创新的管理

技术创新及其管理已经发展成为系统科学。创新不仅是个人创造能力的体现,而且是企业的一种核心竞争能力。文章首先探讨技术创新的定义、特征和类型,提出技术创新包括产品、过程、管理和市场4个内容,继而从知识获取和管理等若干方面讨论了企业如何才能成为技术创新的主体。然后对创新的实施、激励机制、评价体系和影响创新成功及失败的因素作了详尽的阐述。     

Avoiding the innovation island in infrastructure mega-project

Infrastructure mega-project (IMP) innovation is a complex process characterized by highly diverse innovators, a dynamic life-cycle, and stickiness of innovation knowledge. The IMP’s innovation network can be easily broken due to the fact that the network involves many different innovators across different industries and different projects. Further reasons for the fragility of the IMP’s innovation network are the dynamics of the IMP life-cycle, the diversity of the IMP’s innovative entities, the uniqueness of each IMP, and the temporary nature of each IMP’s organizations. The innovation island formed by the breaking of an IMP’s innovation network can stifle and harm innovation performance. Drawing from the knowledge-based view as well as innovation network theory, our research identifies the heterogeneous characte- ristics of IMP innovation. We propose a framework to analyze the formation mechanism of the IMP innovation island from three dimensions—the horizontal innovation island, the vertical innovation island, and the longitudinal innovation island. We look at the Hong Kong-Zhuhai-Macao Bridge project to elaborate the innovation island concept that negatively impacts IMP innovation. We also offer theoretical implications regarding the broader question of how IMPs can manage their innovation in practice.     

Innovation and Firm Growth: Is R&D Worth It?

The paper contributes to an emerging literature that critically questions the degree to which R&D, at the centre of national and transnational innovation policies, results in firm growth. The differences in how innovation affects firm growth is explored for small and large publicly quoted US pharmaceutical firms between 1950 and 2008. We observe that the positive impact of R&D on firm growth is highly conditional upon a combination of firm-specific characteristics such as firm size, patenting and persistence in patenting. For small firms, R&D boosts growth for only a subset of firms: namely, those that patent persistently for a minimum of five years. For large pharmaceutical firms, on the other hand, R&D may have a negative impact on growth; potentially resulting from the low R&D productivity these firms have suffered from since the mid-1990s. These results raise important issues around the R&D and firm growth relationship for small and large firms as well the role of persistence in innovation for boosting firm performance.     

Towards variance-matrix characterization of complementarity relations in a continuous variable system

We discuss complementarity relations in a bipartite continuous variable system. Building up from the work done on discrete d-dimensional systems, we prove that for symmetric two-mode states, quantum complementarity relations can be put in a simple relation with the elements of the variance matrix. When this condition is not satisfied, such a connection becomes non-trivial. Our investigation is the first step towards an operative characterization of the complementarity in a scenario that has not been investigated so far.     

Pricing strategies for information products with network effects and complementary services in a duopolistic market

In this paper, we model a fully covered duopoly market in which two firms offer a differentiated information product that exhibits positive network effects and a complementary premium service to consumers. For each firm, there are two marketing strategies: the freemium strategy and the bundling strategy. We find that, under the market equilibrium, a firms’ decision whether to employ the freemium strategy or not depends largely on the quality of the information product compared to its rival. When the information product quality is similar and the products’ intrinsic values are sufficiently large, both firms will be better off by adopting the freemium strategy, while the bundling strategy will prevail if the products’ intrinsic values are sufficiently small. Additionally, when the magnitude of complementary effects or network effects exceeds a given threshold, both firms’ profit can be enhanced by an increase in the degree of product complementarity or in the intensity of network effects. We also demonstrate that a firm can benefit from an increasing market size only if the intrinsic value of its information product is sufficiently large. Finally, we extend our model to the uncovered market and derive the equilibrium prices and profits.     

Mapping of biotechnology patents of China from 1995–2008

The patents of China in biotechnology in the United States Patent and Trademark Office during 1995–2008 have been analyzed in this paper with the help of bibliometrics and social network analysis techniques. The analysis has been carried out from several perspectives including total patent output of industries, universities and public research institutes (PRIs) and their positions in the knowledge network, the main innovators and their interactions, the collaboration among Chinese regions and the collaborations from abroad. The results show that though with some improvements, the patent performance of Chinese organizations and regions in biotechnology still need to be improved. The connections between Chinese innovators are not very cohesive and they depend heavily on foreign knowledge, especial knowledge from U.S. multinational firms and universities. The important innovators of China in this field are mainly PRIs and universities. More and stronger firm innovators, especially large and powerful multinational companies, are strongly needed for the nation’s biotechnology industry.     

Does complementary technology within an ecosystem affect disruptive innovation? Evidence from Chinese electric vehicle listed firms

Complementary technologies are argued to be crucial elements for disruptive innovation. This is even truer in the consistent structure of ecosystems surrounding core disruptive innovations, where firms take interdependence as the premise to provide complementary technologies and create value jointly. Existing research at the disruptive innovation–ecosystem intersection spans a wide range of theoretical perspectives. However, it is still inconclusive about what types of complementary technology configurations might be most useful for the firms they collaborate with to create disruptive innovation. In an attempt to address these gaps, we consider diversity, quality, and novelty as distinguishing structural characteristics of complementary technologies. Empirical evidence from the Chinese electric vehicle listed firms from 2010 to 2019 reveals that the diversity, quality, and novelty of complementary technologies within ecosystems all contribute to subsequent disruptive innovation. Furthermore, we find an inverted U-shaped moderating effect of technological relatedness on the relationship between complementary technologies and disruptive innovation. At intermediate levels of technological relatedness, complementary technologies have greater benefits for disruptive innovation but are comparatively weaker when technological relatedness is low or high. Our findings crystallise a nuanced understanding of how firms orchestrate complementary activities within ecosystems in the disruptive innovation process, thus narrowing the gap with the technological frontier.     

The Complementary Dynamic Effects of Clusters and Networks

Over the past decades, researchers and policymakers around the world have been paying attention to the concept of clusters of related firms, industries and institutions, with a view to the presumably positive effects of clustering for learning, innovation and the productivity of firms. More recently, a network approach to learning and innovation emerged, which emphasizes strategic, preferential, repeated and at the same time temporary knowledge exchange (i.e. dynamic cooperation) between firms and other organizations. This may, however, go at the expense of the attention for the important, different and complementary learning effects of the mainly spatial process of concentration and clustering of related firms, industries and institutions. This paper argues that clusters and networks are two separate concepts that both merit attention, especially—albeit not exclusively—with a view to learning, knowledge development and innovation. A first argument is that spatial clustering has quite different effects for the development of knowledge, learning and innovation in and by firms, as compared with network settings. A second point is that in some cases, clustering yields a governance advantage over networks. Taking into account the risks of cognitive, technological, organizational and institutional lock-in associated with both processes, this paper concludes that both clustering and networking have advantages and disadvantages for the firms involved. The two concepts are potential dynamic complements, as clustering and networking have different but complementary effects for learning, although they are also static substitutes, as firms may opt to switch between the two processes, for example, leaving a local or regional cluster to engage in a network endeavor at a higher spatial scale.