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Complements and substitutes in profiting from innovation—A choice experimental approach

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  • Fischer, Timo
  • Henkel, Joachim

Abstract

The ability of firms to effectively use mechanisms that support them in profiting from technological innovation is key to outperforming competitors. Yet, such mechanisms have, for the most part, been studied in isolation, without accounting for interactions between them. We address this gap by developing a conjoint-based method to study such interactions, and by applying it to analyze interactions between product-related patents and three other appropriability mechanisms. To this end, we conduct and analyze a series of discrete choice experiments with 319 managers within a leading international communications equipment company. As a result, we find the number of product-related patents to be complementary to the overall size of the patent portfolio and complementary—with an interesting exception—to contributions to open standards. We also find indications of a substitutive interaction with lead time advantages. Hence, the effectiveness of patents seems to be leveraged by controlled diffusion of the underlying technologies and by the size of the firm's patent portfolio, a finding that may contribute to explaining the patent paradox. Theoretical and managerial implications are discussed.

Suggested Citation

  • Fischer, Timo & Henkel, Joachim, 2013. "Complements and substitutes in profiting from innovation—A choice experimental approach," Research Policy, Elsevier, vol. 42(2), pages 326-339.
    • Handle: RePEc:eee:respol:v:42:y:2013:i:2:p:326-339
    DOI: 10.1016/j.respol.2012.06.004
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    9. Frosch, Katharina & Harhoff, Dietmar & Hoisl, Karin & Steinle, Christian & Zwick, Thomas, 2015. "Candidate screening for the recruitment of critical research and development workers: A report and preliminary results with evidence from experimental data from German high-tech firms," ZEW Discussion Papers 15-002, ZEW - Leibniz Centre for European Economic Research.
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    More about this item

    Keywords

    Profiting from innovation; Value appropriation; Patents; Complementarity; Patent paradox;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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