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Patent-based investment funds: from invention to innovation

Author

Listed:
  • Svenja Jarchow

    (Technical University of Munich)

  • Andrea Röhm

    (Technical University of Munich)

Abstract

In the context of entrepreneurial ecosystems the transformation of inventions to innovations is a crucial measure of success. Yet, the exploitation of inventions stemming from academic or corporate research is not as extensive as we would wish leaving room for improvements. Drawing on the knowledge spillover theory of entrepreneurship we investigate the phenomenon of patent-based investment funds as a new type of intermediary in the knowledge spillover process, which could facilitate the transformation from invention to innovation. Using a qualitative research design we analyze data from 21 expert interviews and complementary archival data. We find common characteristics of funds’ activities which decrease knowledge filters and fill the financing gap in the early stages of technology development. We propose a classification of commercialization strategies and link them to a specific set of invention characteristics. Our insights contribute to the knowledge spillover theory of entrepreneurship and to the knowledge filter model by providing empirical evidence for the division of labor between knowledge creator and commercialization agent. This adds to our view on entrepreneurial ecosystems as we shed light on different players in the transition process from invention to innovation and thus enhance our understanding of the multifaceted aspects in such an ecosystem. In addition, we refine the literature on patent-based investment funds by providing a classification of the entire commercialization spectrum used by funds and add to extant theorizing on how the nature of a technology determines its commercialization.

Suggested Citation

  • Svenja Jarchow & Andrea Röhm, 2019. "Patent-based investment funds: from invention to innovation," The Journal of Technology Transfer, Springer, vol. 44(2), pages 404-433, April.
    • Handle: RePEc:kap:jtecht:v:44:y:2019:i:2:d:10.1007_s10961-018-9691-3
    DOI: 10.1007/s10961-018-9691-3
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    2. Zambrano-Monserrate, Manuel A. & Soto, Gonzalo Hernández & Ahakwa, Isaac & Manigandan, Palanisamy, 2024. "Dynamic effects on modern renewable energy generation: The role of patents in clean energy technology," Energy, Elsevier, vol. 311(C).
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    More about this item

    Keywords

    Patent-based investment funds; Technology intermediaries; Knowledge spillover theory of entrepreneurship; Invention characteristics;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • 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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