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Technological competition and patent strategy: Protecting innovation, preempting rivals and defending the freedom to operate

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  • Cappelli, Riccardo
  • Corsino, Marco
  • Laursen, Keld
  • Torrisi, Salvatore

Abstract

Drawing on the resource-based view of the firm, we examine the effect of technological competition over a patent on the firm's choice of patenting strategy. We claim that technological competition makes the traditional strategy of protecting focal innovations from imitation less likely and increases the likelihood of a play strategy — i.e. using patents to avoid the risk of hold-up by other patent owners, or as a bargaining chip in litigation and cross-licensing. However, we claim also that technological competition over a target close to the firm's core technology should lead to use of a fence strategy i.e. to blocking the commercial endeavors of rivals and preempting substitute inventions. We find support for our hypotheses using data from a large-scale survey of European patent applications.

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  • Cappelli, Riccardo & Corsino, Marco & Laursen, Keld & Torrisi, Salvatore, 2023. "Technological competition and patent strategy: Protecting innovation, preempting rivals and defending the freedom to operate," Research Policy, Elsevier, vol. 52(6).
  • Handle: RePEc:eee:respol:v:52:y:2023:i:6:s0048733323000690
    DOI: 10.1016/j.respol.2023.104785
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    More about this item

    Keywords

    Technological competition; Intellectual property management; Patent strategy; Appropriability;
    All these keywords.

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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