Advanced Search
MyIDEAS: Login

The role of corporate technology strategy and patent portfolios in low-, medium- and high-technology firms

Contents:

Author Info

  • Lichtenthaler, Ulrich
Registered author(s):

    Abstract

    Previous research into technology strategies and patent portfolios has focused on high-technology firms, whereas low- and medium-technology companies have been relatively neglected. Therefore, we analyze how corporate technology strategy and the size and composition of patent portfolios affect the performance of low-, medium- and high-technology firms. Data from 136 European companies are used to examine four hypotheses relating financial performance to technological diversification, technological aggressiveness, patent portfolio size, and patent portfolio quality. The cross-industry sample allows analyzing the different consequences of these strategic parameters in low-, medium- and high-technology firms by considering technological intensity as a moderator. Our first finding is that the positive impact of technological aggressiveness is limited in low- and medium-technology companies. Secondly, technological diversification has a positive effect in high-technology firms and a negative effect in low-technology firms. Thirdly, patent portfolio size has a positive effect only in high-technology firms. Finally, patent portfolio quality has an equally positive influence on all firms' performance. In part, these results conflict with the findings of previous research into high-technology companies, and they call for rethinking the role of technology strategies and intellectual property portfolios in firms across industries.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/B6V77-4TYXKYM-2/2/99593e7252870d18b6fae557300413df
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal Research Policy.

    Volume (Year): 38 (2009)
    Issue (Month): 3 (April)
    Pages: 559-569

    as in new window
    Handle: RePEc:eee:respol:v:38:y:2009:i:3:p:559-569

    Contact details of provider:
    Web page: http://www.elsevier.com/locate/respol

    Related research

    Keywords: Low- and medium-technology firms High-technology firms Technology strategy Technological diversification Intellectual property management;

    Other versions of this item:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Kevin B. Hendricks & Vinod R. Singhal, 2005. "Association Between Supply Chain Glitches and Operating Performance," Management Science, INFORMS, vol. 51(5), pages 695-711, May.
    2. Abernathy, William J. & Clark, Kim B., 1985. "Innovation: Mapping the winds of creative destruction," Research Policy, Elsevier, vol. 14(1), pages 3-22, February.
    3. O'Shea, Rory P. & Allen, Thomas J. & Chevalier, Arnaud & Roche, Frank, 2005. "Entrepreneurial orientation, technology transfer and spinoff performance of U.S. universities," Research Policy, Elsevier, vol. 34(7), pages 994-1009, September.
    4. Gambardella, Alfonso & Giuri, Paola & Luzzi, Alessandra, 2007. "The market for patents in Europe," Research Policy, Elsevier, vol. 36(8), pages 1163-1183, October.
    5. Albert Link & John Scott, 2002. "Explaining Observed Licensing Agreements: Toward a Broader Understanding of Technology Flows," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(3), pages 211-231.
    6. Hartmut Hirsch-Kreinsen & David Jacobson & Paul Robertson, 2006. "'Low-tech' Industries: Innovativeness and Development Perspectives—A Summary of a European Research Project," Prometheus, Taylor & Francis Journals, vol. 24(1), pages 3-21.
    7. Neus Palomeras, 2007. "An Analysis of Pure-Revenue Technology Licensing," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(4), pages 971-994, December.
    8. Gambardella, Alfonso & Hall, Bronwyn H., 2006. "Proprietary versus public domain licensing of software and research products," Research Policy, Elsevier, vol. 35(6), pages 875-892, July.
    9. Harabi, Najib, 1994. "Appropriability of Technical Innovations: An Empirical Analysis," MPRA Paper 26267, University Library of Munich, Germany.
    10. Jeffrey T. Macher, 2006. "Technological Development and the Boundaries of the Firm: A Knowledge-Based Examination in Semiconductor Manufacturing," Management Science, INFORMS, vol. 52(6), pages 826-843, June.
    11. Scott Shane, 2001. "Technology Regimes and New Firm Formation," Management Science, INFORMS, vol. 47(9), pages 1173-1190, September.
    12. Schmoch, Ulrich, 2007. "Double-boom cycles and the comeback of science-push and market-pull," Research Policy, Elsevier, vol. 36(7), pages 1000-1015, September.
    13. William D. Nordhaus, 2001. "Productivity Growth and the New Economy," NBER Working Papers 8096, National Bureau of Economic Research, Inc.
    14. Thornhill, Stewart, 2006. "Knowledge, innovation and firm performance in high- and low-technology regimes," Journal of Business Venturing, Elsevier, vol. 21(5), pages 687-703, September.
    15. Quintana-Garci­a, Cristina & Benavides-Velasco, Carlos A., 2008. "Innovative competence, exploration and exploitation: The influence of technological diversification," Research Policy, Elsevier, vol. 37(3), pages 492-507, April.
    16. Nishaal Gooroochurn & Aoife Hanley, 2006. "A Tale of Two Literatures: Transaction Cost and Property Rights in Innovation Outsourcing," Occasional Papers 17, Industrial Economics Division.
    17. Lichtenthaler, Ulrich & Ernst, Holger, 2007. "Developing reputation to overcome the imperfections in the markets for knowledge," Research Policy, Elsevier, vol. 36(1), pages 37-55, February.
    18. Henry Mintzberg, 1980. "Structure in 5's: A Synthesis of the Research on Organization Design," Management Science, INFORMS, vol. 26(3), pages 322-341, March.
    19. Breschi, Stefano & Lissoni, Francesco & Malerba, Franco, 2003. "Knowledge-relatedness in firm technological diversification," Research Policy, Elsevier, vol. 32(1), pages 69-87, January.
    20. Nicholas Economides & Evangelos Katsamakas, 2005. "Two-sided competition of proprietary vs. open source technology platforms and the implications for the software industry," Working Papers 05-06, NET Institute.
    21. Shane, Scott & Somaya, Deepak, 2007. "The effects of patent litigation on university licensing efforts," Journal of Economic Behavior & Organization, Elsevier, vol. 63(4), pages 739-755, August.
    22. Molas-Gallart, Jordi & Tang, Puay, 2006. "Ownership matters: Intellectual Property, privatization and innovation," Research Policy, Elsevier, vol. 35(2), pages 200-212, March.
    23. Teece, David J., 1986. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," Research Policy, Elsevier, vol. 15(6), pages 285-305, December.
    24. Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1987. "Appropriating the Returns from Industrial Research and Development," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(3), pages 783-832.
    25. James Foreman-Peck & Gerry Makepeace & Brian Morgan, 2006. "Growth and profitability of small and medium-sized enterprises: Some Welsh evidence," Regional Studies, Taylor & Francis Journals, vol. 40(4), pages 307-319.
    26. Scott Shane & Deepak Somaya, 2007. "The Effects of Patent Litigation on University Licensing Efforts," NBER Chapters, in: Academic Science and Entrepreneurship: Dual Engines of Growth National Bureau of Economic Research, Inc.
    27. Mytelka, Lynn K. & Smith, Keith, 2002. "Policy learning and innovation theory: an interactive and co-evolving process," Research Policy, Elsevier, vol. 31(8-9), pages 1467-1479, December.
    28. Suzuki, Jun & Kodama, Fumio, 2004. "Technological diversity of persistent innovators in Japan: Two case studies of large Japanese firms," Research Policy, Elsevier, vol. 33(3), pages 531-549, April.
    29. Dosi, G. & Marengo, L. & Pasquali, C., 2006. "How much should society fuel the greed of innovators?: On the relations between appropriability, opportunities and rates of innovation," Research Policy, Elsevier, vol. 35(8), pages 1110-1121, October.
    30. Patel, Pari & Pavitt, Keith, 1997. "The technological competencies of the world's largest firms: Complex and path-dependent, but not much variety," Research Policy, Elsevier, vol. 26(2), pages 141-156, May.
    31. Robertson, Paul L. & Patel, Parimal R., 2007. "New wine in old bottles: Technological diffusion in developed economies," Research Policy, Elsevier, vol. 36(5), pages 708-721, June.
    32. Dietmar Harhoff & Francis Narin & F. M. Scherer & Katrin Vopel, 1999. "Citation Frequency And The Value Of Patented Inventions," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 511-515, August.
    33. Edwin Mansfield, 1986. "Patents and Innovation: An Empirical Study," Management Science, INFORMS, vol. 32(2), pages 173-181, February.
    34. Suma Athreye & John Cantwell, 2005. "Creating Competition? Globalisation and the emergence of new technology producers," Open Discussion Papers in Economics 52, The Open University, Faculty of Social Sciences, Department of Economics.
    35. Pitkethly, Robert H., 2001. "Intellectual property strategy in Japanese and UK companies: patent licensing decisions and learning opportunities," Research Policy, Elsevier, vol. 30(3), pages 425-442, March.
    36. Arora, Ashish, 1997. "Patents, licensing, and market structure in the chemical industry," Research Policy, Elsevier, vol. 26(4-5), pages 391-403, December.
    37. Ernst, Holger, 2001. "Patent applications and subsequent changes of performance: evidence from time-series cross-section analyses on the firm level," Research Policy, Elsevier, vol. 30(1), pages 143-157, January.
    38. Anand, Bharat N & Khanna, Tarun, 2000. "The Structure of Licensing Contracts," Journal of Industrial Economics, Wiley Blackwell, vol. 48(1), pages 103-35, March.
    39. Pisano, Gary, 2006. "Profiting from innovation and the intellectual property revolution," Research Policy, Elsevier, vol. 35(8), pages 1122-1130, October.
    40. Garcia-Vega, Maria, 2006. "Does technological diversification promote innovation?: An empirical analysis for European firms," Research Policy, Elsevier, vol. 35(2), pages 230-246, March.
    41. Rinaldo Evangelista & Tore Sandven & Giorgio Sirilli & Keith Smith, 1998. "Measuring Innovation in European Industry," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 5(3), pages 311-333.
    42. Paul Robertson & Eduardo Pol & Peter Carroll, 2003. "Receptive Capacity of Established Industries as a Limiting Factor in the Economy's Rate of Innovation�," Industry and Innovation, Taylor & Francis Journals, vol. 10(4), pages 457-474.
    43. Kortum, Samuel & Lerner, Josh, 1999. "What is behind the recent surge in patenting?1," Research Policy, Elsevier, vol. 28(1), pages 1-22, January.
    44. McGahan, Anita M. & Silverman, Brian S., 2006. "Profiting from technological innovation by others: The effect of competitor patenting on firm value," Research Policy, Elsevier, vol. 35(8), pages 1222-1242, October.
    45. Brian S. Silverman, 1999. "Technological Resources and the Direction of Corporate Diversification: Toward an Integration of the Resource-Based View and Transaction Cost Economics," Management Science, INFORMS, vol. 45(8), pages 1109-1124, August.
    46. Andersen, Birgitte & Konzelmann, Sue, 2008. "In search of a useful theory of the productive potential of intellectual property rights," Research Policy, Elsevier, vol. 37(1), pages 12-28, February.
    47. Jerry Hausman & Gregory K. Leonard, 2006. "Real Options And Patent Damages: The Legal Treatment Of Non-Infringing Alternatives, And Incentives To Innovate," Journal of Economic Surveys, Wiley Blackwell, vol. 20(4), pages 493-512, 09.
    48. Casper, Steven, 2007. "How do technology clusters emerge and become sustainable?: Social network formation and inter-firm mobility within the San Diego biotechnology cluster," Research Policy, Elsevier, vol. 36(4), pages 438-455, May.
    49. Gambardella, Alfonso & Torrisi, Salvatore, 1998. "Does technological convergence imply convergence in markets? Evidence from the electronics industry," Research Policy, Elsevier, vol. 27(5), pages 445-463, September.
    50. YoungJun Kim & Nicholas S. Vonortas, 2006. "Determinants of technology licensing: the case of licensors," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 235-249.
    51. Jo-Hui Chen & Martin Williams, 1999. "The determinants of business failures in the US low-technology and high-technology industries," Applied Economics, Taylor & Francis Journals, vol. 31(12), pages 1551-1563.
    52. Daniel A. Levinthal, 1997. "Adaptation on Rugged Landscapes," Management Science, INFORMS, vol. 43(7), pages 934-950, July.
    53. Linda Argote & Bill McEvily & Ray Reagans, 2003. "Managing Knowledge in Organizations: An Integrative Framework and Review of Emerging Themes," Management Science, INFORMS, vol. 49(4), pages 571-582, April.
    54. Granstrand, Ove & Sjolander, Soren, 1990. "Managing innovation in multi-technology corporations," Research Policy, Elsevier, vol. 19(1), pages 35-60, February.
    55. Nagaoka, Sadao & Kwon, Hyeog Ug, 2006. "The incidence of cross-licensing: A theory and new evidence on the firm and contract level determinants," Research Policy, Elsevier, vol. 35(9), pages 1347-1361, November.
    56. Jan W. Rivkin, 2000. "Imitation of Complex Strategies," Management Science, INFORMS, vol. 46(6), pages 824-844, June.
    57. Debackere, Koenraad & Veugelers, Reinhilde, 2005. "The role of academic technology transfer organizations in improving industry science links," Research Policy, Elsevier, vol. 34(3), pages 321-342, April.
    58. Asheim, Bjorn T. & Coenen, Lars, 2005. "Knowledge bases and regional innovation systems: Comparing Nordic clusters," Research Policy, Elsevier, vol. 34(8), pages 1173-1190, October.
    59. Granstrand, Ove, 1998. "Towards a theory of the technology-based firm1," Research Policy, Elsevier, vol. 27(5), pages 465-489, September.
    60. Ulrich Lichtenthaler & Eckhard Lichtenthaler, 2009. "A Capability-Based Framework for Open Innovation: Complementing Absorptive Capacity," Journal of Management Studies, Wiley Blackwell, vol. 46(8), pages 1315-1338, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Gambardella, Alfonso & Giarratana, Marco S., 2013. "General technological capabilities, product market fragmentation, and markets for technology," Research Policy, Elsevier, vol. 42(2), pages 315-325.
    2. Kani, Masayo & Motohashi, Kazuyuki, 2012. "Understanding the technology market for patents: New insights from a licensing survey of Japanese firms," Research Policy, Elsevier, vol. 41(1), pages 226-235.
    3. Hung, Shiu-Wan & Wang, An-Pang, 2012. "Entrepreneurs with glamour? DEA performance characterization of high-tech and older-established industries," Economic Modelling, Elsevier, vol. 29(4), pages 1146-1153.
    4. Chia Sun, 2014. "A conceptual framework for R&D strategic alliance assessment for Taiwan’s biotechnology industry," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(1), pages 259-279, January.
    5. Cruz-Cázares, Claudio & Bayona-Sáez, Cristina & García-Marco, Teresa, 2013. "You can’t manage right what you can’t measure well: Technological innovation efficiency," Research Policy, Elsevier, vol. 42(6), pages 1239-1250.
    6. Lis-Gutiérrez, Jenny-Paola, 2013. "Gestión de la propiedad intelectual en las organizaciones. Una revisión de la literatura reciente
      [Intellectual Property Management in Organizations. A Review of Recent Literature]
      ," MPRA Paper 47757, University Library of Munich, Germany.

    Lists

    This item is featured on the following reading lists or Wikipedia pages:
    1. Recognized plagiarism
    2. Recognized plagiarism

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:38:y:2009:i:3:p:559-569. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.