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To Standardise Or To Patent? Development Of A Decision Making Tool And Recommendations For Young Companies

Author

Listed:
  • NIZAR ABDELKAFI

    (Business Models)

  • SERGIY MAKHOTIN

    (Business Models)

  • MARINA THUNS

    (Business Models)

  • ANNA POHLE

    (#x2020;Knowledge and Technology Transfer, Fraunhofer Center for International Management and Knowledge Economy, Neumarkt 9-19, 04109 Leipzig, Germany)

  • KNUT BLIND

    (#x2021;Technische Universität Berlin, Chair of Innovation Economics and Fraunhofer Institute for Open Communication Systems, Innovation and Technology Transfer, Marchstraße 23, 10587, Berlin)

Abstract

Young companies need support concerning decisions related to intellectual properties. Entrepreneurs can resort to a menu of strategies, not only patenting. First, we explore the literature on standardisation and patenting and relate it to entrepreneurship to identify the internal and external influencing factors as well as the motives and risks related to decision making. Then, we conduct five case studies to explore these influencing factors, while trying to reconstruct the decision making process. We find five main factors: technology, resources, knowledge protection vs. knowledge diffusion, need for partnerships, and pace of innovation. Companies should use patents when their technology is patentable and knowledge protection is perceived essential. Standardisation is suitable when knowledge diffusion is more important than protection, and companies look for establishing new partnerships. These insights are integrated into a decision tree that provides guidance to young entrepreneurs to make an informed decision regarding intellectual properties.

Suggested Citation

  • Nizar Abdelkafi & Sergiy Makhotin & Marina Thuns & Anna Pohle & Knut Blind, 2016. "To Standardise Or To Patent? Development Of A Decision Making Tool And Recommendations For Young Companies," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(08), pages 1-30, December.
    • Handle: RePEc:wsi:ijimxx:v:20:y:2016:i:08:n:s136391961640020x
    DOI: 10.1142/S136391961640020X
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    References listed on IDEAS

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    1. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    2. Narayanan, V.K. & Chen, Tianxu, 2012. "Research on technology standards: Accomplishment and challenges," Research Policy, Elsevier, vol. 41(8), pages 1375-1406.
    3. Knut Blind, 2006. "Explanatory factors for participation in formal standardisation processes: Empirical evidence at firm level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(2), pages 157-170.
    4. Suarez, Fernando F., 2004. "Battles for technological dominance: an integrative framework," Research Policy, Elsevier, vol. 33(2), pages 271-286, March.
    5. Bekkers, Rudi & Bongard, René & Nuvolari, Alessandro, 2011. "An empirical study on the determinants of essential patent claims in compatibility standards," Research Policy, Elsevier, vol. 40(7), pages 1001-1015, September.
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    8. Timothy S. Simcoe & Stuart J.H. Graham & Maryann P. Feldman, 2009. "Competing on Standards? Entrepreneurship, Intellectual Property, and Platform Technologies," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(3), pages 775-816, September.
    9. Paul Wakke & Knut Blind & Florian Ramel, 2016. "The impact of participation within formal standardization on firm performance," Journal of Productivity Analysis, Springer, vol. 45(3), pages 317-330, June.
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    Cited by:

    1. Patel, Pankaj C. & Pearce, John A., 2018. "The survival consequences of intellectual property for retail ventures," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 77-84.

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