Determinants of licensing activities of local public technology centers in Japan

Local public technology centers are publicly managed institutions that facilitate technology transfer to small local firms. As well as providing small local firms with various technological services, local public technology centers conduct their own research and patent inventions. This study examines factors facilitating licensing activities and finds that the determinants vary according to the phase of technology transfer. Employing more Ph.D. scientists tends to promote the licensing of patents, while organizational efforts that encourage scientists to better understand the technological needs of small local firms tend to increase royalty revenue. The theoretical and practical implications of the results are discussed.     

Contributing to markets for technology? A comparison of patent filing motives of individual inventors,small companies and universities

We compare patenting motives of individual inventors, small firms, and universities to those of large firms. We use data from a survey (641 responses) among applicants at the European Patent Office. Our results from regression and factor analyses confirm significant differences among applicant types. The generation of licensing opportunities is rated as being more important if the applicant is a university, individual inventor or small firm. Blocking and prevention of imitation is rated as being less important if the applicant is a university. We interpret that this finding results from the universities' willingness to license under adequate conditions and their tendency not to use their patents for preventing the diffusion of their technology and its usage by others. Individual inventors and small firms place a higher importance on using patents as signals to investors, suggesting that patents are perceived as useful to secure access to the capital necessary to start or grow a business. Among all applicant groups, individual inventors attribute the most importance to blocking as a patent filing motive. This gives cause for concern because individuals who do not manufacture products on their own but, rather, use their patents to block others from production act as patent trolls.     

Commercializing inventions resulting from university research: Analyzing the impact of technology characteristics on subsequent business models

One of the key challenges in commercializing inventions arising from academic research is deciding on an appropriate business model for transferring the invention from the academic world to the commercial world. However, there is little empirical evidence to suggest which model to choose. This study attempts to address this gap by examining how characteristics of technologies affect the selection of business models.We consider four characteristics of technology: patent or other legal protection, specialized complementary assets, commercial uncertainty and technological dynamism. We relate these characteristics to the choice of three basic business models for commercializing inventions. Data for this study were gathered for 42 commercialized inventions.We found evidence that greater patent or other legal protection for the technology was associated with a greater likelihood that the technology was commercialized by transferring limited rights to the technology to existing firms. We also found evidence that greater commercial uncertainty was associated with a greater likelihood that the technology was commercialized by creation of a new firm or transfer of the rights to the technology to an existing firm. We did not find evidence of a relationship between the importance of specialized complementary assets or technological dynamism and the business model used.     

Does working with industry come at a price? A study of doctoral candidates’ performance in collaborative vs. non-collaborative Ph.D. projects

Collaborative Ph.D. projects between university and industry constitute an important aspect of university–industry collaboration, yet has remained under-researched thus far. The specific question this paper asks is how collaborative Ph.D. projects perform compared to non-collaborative Ph.D. projects. Conducting an empirical study on 448 Ph.D. projects at Eindhoven University of Technology, it is observed that collaborative Ph.D. projects outperform non-collaborative Ph.D. projects both in terms of industrial performance (number of patents and patent citations) and academic performance (number of publications and publication citations). A further investigation indicates that the high performance of collaborative Ph.D. projects is specific to the university׳s collaborations with Philips and with Public Research Organisations. When measuring academic performance is a more restricted manner by looking at top-publications only, it is observed that collaborative Ph.D. projects no longer outperform non-collaborative Ph.D. projects. One of the policy implications of this study is that there seems to be no reasons for universities to be reserved to enter into collaborative Ph.D. projects, when such opportunities arise.     

UNIVERSITY RESEARCH, INTELLECTUAL PROPERTY RIGHTS AND EUROPEAN INNOVATION SYSTEMS

Abstract This paper surveys the literature on university patenting. From the point of view of the economic theory of patents, it is argued that patenting knowledge developed by university researchers is paradoxical: patents are normally intended to stimulate knowledge development by providing property rights, but universities operate also under a different incentive scheme, i.e. they receive public funds to perform socially useful knowledge. In the debate surrounding the so‐called Bayh‐Dole Act in the USA, it has, however, been argued that patents on university inventions may be necessary to stimulate technology transfer from universities to private firms. The first part of the paper addresses two major questions. First, what is the economic logic of Bayh‐Dole, and, second, what were the effects on universities and the knowledge they develop? In the second part, the paper addresses the issue of whether ‘Bayh‐Dole‐like’ legislation would be beneficial for European countries. In a number of European countries, a suggestion has been made that this could enhance knowledge transfer from the public to the private sector. Using a new database resulting from a survey among patent inventors in six European countries, an assessment is given of the degree of university patenting in Europe. Because university researchers are often involved in patented inventions without the university being listed as a patent applicant, statistics based on the patent office databases alone often underestimate university patenting in Europe. The paper ends with a discussion of how this ‘European practice’ of university patenting affects public–private knowledge transfer in Europe, and how this compares to the effects of the Bayh‐Dole Act in the USA.     

Industry work experience and inventive capacity of South African academic researchers

The inventive capacity of South African universities and researchers is investigated through analysis of university patent applications. Patent applications to the South African Patent office from 1996 to 2006 are used as an indicator of inventive capacity. The investigation determines, for the first time, patenting activities of local universities at the South African Patent Office for the past 10 years and it identifies the performance of faculties and departments. We suggest that patent analysis of local patent offices in developing countries provides a more comprehensive picture of inventive activity than the analyses in the main patent offices in USA and Europe.The assertion that industrial experience affects the inventiveness of academic staff is also investigated. The study finds that most inventors or co-inventors held at least one position in industry, or in some cases, specialized parastatals (non-university institutions) prior to patent application. The study supports the idea that experience and the professional trajectory of scientists through migration from industry to university leads to an increase of researchers’ scientific and technical human capital which is convertible into high performance or inventive capacity. We argue that this linkage is valid equally in developed and developing countries (like South Africa) and that universities internationally wishing to improve their entrepreneurial character should aim to employ academic with industrial prior experience.     

Patents for genetic inventions: a tool to promote technological advance or a limitation for upstream inventions?

Today's conventional wisdom among economists and lawyers is heavily weighted toward the proposition that strong and broad patent rights are conducive to economic progress. Concerns have been raised as to the extent to which strong patent rights could build up barriers to follow-up research and thus hinder technological advance. This poses a number of difficulties particularly in the area of genetics with respect to the scope of protection and the definition of what is patentable. This article considers the problems of ‘anti-commons’, limitations for upstream inventions, patent thickets and royalty stacking with licenses for genetic inventions. A survey of 53 biotechnology companies in Switzerland builds the empirical basis of the investigation. The survey results confirm that the concepts of ‘anti-commons’, ‘patent thickets’ and ‘royalty stacking’ are indeed relevant. However, they are not highly relevant for the Swiss biotechnology industry from an economic point of view. A broad research exemption combined with a protection limited to concrete disclosure functions of DNA patents and compulsory licensing arrangements are considered as feasible remedies for overcoming certain difficulties with gene patents.     

Government instruments to support the commercialization of university research: Lessons from Canada

Increased efforts are made in most industrialized countries to promote the commercialization of university research, for instance, through spin-off firm formation. Many studies have investigated the initiatives set up in the university sector that aim to support and facilitate the commercialization of research, such as technology transfer offices (TTO). However, few studies have looked at the increasing number of instruments introduced from the government. This paper reviews the Canadian support structure at federal level that aims to support the commercialization of publicly funded research. Two types of programs can be identified. Firstly, programs made to induce structural reforms within the university sector in order to improve the institutional capabilities to facilitate commercialization projects. Secondly, programs providing support to specific commercialization projects. This paper explores how these types of programs are operated at government level. An example of implementation at university level is also given. The lessons to be learned from the Canadian case are related to how the government initiatives encourage a bottom-up approach. This is accomplished by providing resources for direct use in commercialization projects or to develop professional expertise in technology transfer in the university sector, by experimenting with new initiatives, and finally by facilitating cooperation between commercializing organizations.     

The economic value of patent portfolios

Patent holders may choose to protect innovations with single patents or to develop portfolios of multiple, related patents. We propose a decision‐making model in which patent holders allocate resources to either expanding the number of related patents or investing in higher value of patents in the portfolio. We estimate the derived value equation using portfolio value data from an inventor survey at the level of individual inventions rather than the firm as a whole. We find that investments in individual inventions exhibit diminishing returns, and that a good part of the value of a portfolio depends on adding new patented inventions. Also, while diminishing returns to individual inventions are stable across subsamples, the returns to portfolio size vary between complex and discrete industries, and between inventions that are science‐based or driven by customer information. When firms seek to strengthen appropriability, the returns to an increase of portfolio size are not different from the sample average. Thus, a higher number of inventions in a portfolio may reflect both stronger appropriability via patents and genuine creation of value.     

Entrepreneurs Seeking Gains: Profit Motives and Risk Aversion in Inventors’ Commercialization Decisions

Direct evidence has been lacking on entrepreneurs’ response to individual‐specific opportunities, and recent work suggests that entrepreneurship may be a non‐profit‐seeking activity and that entrepreneurs evaluate risk oddly. We model heterogeneous inventors and inventions, outside opportunities, sunk and nonsunk costs, and risk, to guide data analysis. We use assessment data from a center paid to assess the inventions’ economic potential. Inventors’ choices whether to commercialize their inventions and later whether to remain in production were consistent with profit‐seeking motives and risk aversion.     

Endowing university spin-offs pre-formation: Entrepreneurial capabilities for scientist-entrepreneurs

University spin-offs are important mechanisms for creating and capturing value from scientific inventions. Academic scientists are uniquely positioned to shape such opportunities long before the university spin-off is founded. To better understand how science-based university spin-offs can be endowed for success, the pre-formation stage of 30 ventures co-founded over a 40 year period by a star-scientist-entrepreneur is analysed by matching his 363 co-invented US patents granted to 1476 co-authored publications and these 30 ventures. Employing the extended case method, including the analysis of extensive archival data, iterative interviews, and this unique, longitudinal, multi-level dataset, existing dynamic capabilities theory is confronted and extended with evidence as to how a star-scientist-entrepreneur senses and shapes and seizes opportunities to endow university spin-offs pre-formation. A process model is developed depicting four pre-formation entrepreneurial capabilities with which these science-based university spin-offs are endowed for success. Recommendations are made for scientist-entrepreneurs, investors, university leadership, and for innovation policymakers.     

Factor market rivalry and interindustry competitive dynamics

We study competitive dynamics by using 10 years of data from the biotech industry on patent infringement lawsuits because they capture offensive actions and defensive responses. Results suggest that larger patent portfolios, long‐term partnerships, and short‐term agreements lead to factor market rivalry. Specifically, long‐term research partnerships are associated with lower proclivity and vulnerability to attack, while short‐term licensing and marketing agreements with increased proclivity and vulnerability to attack. Lastly, although nonbiotech companies attack biotech firms, the proclivity of the latter to launch cross‐industry attacks is not significant. We discuss how the results contribute to competitive dynamics research and theory.     

External knowledge sourcing: science,market and the value of patented inventions

This paper analyzes the choice between alternative sources of knowledge in patented inventions. Inventors can use scientific and/or market‐oriented sources of knowledge. We formally test whether these two types of knowledge acquisition are complementary or substitutable in the value of patented inventions. The results suggest that simultaneous exploitation of different knowledge inputs is ‘subadditive’ since inventors would have to manage assimilation and integration of disparate items of external knowledge stemming from distant technological contexts. Copyright © 2009 John Wiley & Sons, Ltd.     

Darwin and Lamarck in creative ideas: a qualitative study of inventors’ stories

Knowledge creation has been enormously emphasized in recent years as the critical factor for long term economic growth. Knowledge creation can affect individuals and societies by increasing economic opportunities. In order to see the knowledge creation process, individuals who have different approaches to the problems can be a starting point to understand creativity in inventions. Accordingly, this study aims to understand the generation process of inventive ideas from inventors’ point of view. Inventors in cancer research are interviewed by asking the question of how they came up with their inventive ideas. From inventors’ stories six themes are developed: stumbled into solution, like raising arm, tried different things, open to variety, possibility of error, and extension from previous knowledge.     

Patents, Secrets, and the First-Inventor Defense

We analyze optimal patent design when innovators can rely on secrecy to protect their innovations. Secrecy has no fixed term but does not preclude accidental disclosure nor independent creation by other inventors. We derive the optimal scope of the rights conferred to such second inventors, showing that if the patent life is set optimally, second inventors should be allowed to patent and to exclude first inventors who have relied on secrecy. We then identify conditions under which it is socially desirable to increase patent life as much as is necessary to induce first inventors to patent. The circumstances in which it is preferable that they rely on secrecy seem rather limited .     

Patent-based investment funds as innovation intermediaries for SMEs: In-depth analysis of reciprocal interactions,motives and fallacies

SMEs and academic spin-offs play an important role in generating innovations but face resource and competency constraints that have implications for commercializing their technologies. In two in-depth case studies we analyze how patent-based investment funds (PBIFs), operating as innovation intermediaries, help overcome these constraints. In contrast to other patent intermediaries, PBIFs acquire patents and patentable inventions at an early stage of technology development when access to capital is particularly critical. They invest in the technological and legal advancement of their portfolio, which is mostly conducted in close interaction with the technology-providing SMEs and their original inventors. These PBIFs not only provide high added-value in the course of technology commercialization but also operate international networks to facilitate the commercialization of SMEs' technologies at an international scale. Although PBIFs are a promising new agent in the heterogeneous field of innovation intermediaries, their commercialization results and the actual rate of returns are not yet well established.     

The transformation between exploration and exploitation applied to inventors of packaging innovations

While the inventor is often the driver of an invention in the early stages, he/she needs to move between different social networks for knowledge in order to create and capture value. The main objective of this research is to propose a literature-based framework based on innovation network theory and complemented with C–K theory, in order to analyze the invention/innovation process of inventors and the product concepts in a packaging industry context. Empirical input from three case studies of packaging inventions and their inventors is used to elaborate the suggested framework.The article identifies important gaps in the literature of innovation networks. This is addressed through a theoretical framework based on network theories, complemented with C–K theory for the product design level. The strength-of-ties dimension of the theoretical framework suggests, in agreement with the mainstream literature and the cases presented, that weak ties are required to access the knowledge related to exploration networks and strong ties are required to utilize the knowledge in the exploitation network. The transformation network is an intermediate step acting as a bridge where entrepreneurs can find required knowledge. The transformation network is also an intermediate step where entrepreneurs find financing and companies interested in commercializing inventions.     

Metropolitan patenting, inventor agglomeration and social networks: A tale of two effects

We investigate the separate effects on metropolitan patenting of inventor agglomeration and the structure of social networks linking inventors within and across metropolitan areas in the United States between 1977 and 2002. Using patent data we have been able to assign a metropolitan location to individual inventors, link inventors who have co-authored patents, and characterize the structural features of the networks linking inventors. Our main question concerns the relative importance of salient features of the social networks linking inventors on metropolitan patenting productivity. We find that agglomerative features of metropolitan areas are more important determinants of metropolitan patenting productivity than structural feature of the inventive networks. While the aggregation of isolated inventors correlates positively with patenting productivity, density of connections correlates negatively.     

University–industry collaboration in Italy: A bibliometric examination

This work investigates public–private research collaboration between Italian universities and domestic industry, applying a bibliometric type of approach.The study is based on an exhaustive listing of all co-authored publications in international journals that are jointly realized by Italian university scientists and researchers in the private sector; this listing permits the development of a national mapping system for public–private collaboration that is unique for its extensive and representative character. It is shown that, in absolute terms, most collaborations occur in medicine and chemistry, while it is industrial and information engineering that shows the highest percentage of co-authored articles out of all articles in the field.In addition, the investigation empirically examines and tests several hypotheses concerning the qualitative–quantitative impact of collaboration on the scientific production of individual university researchers. The analyses demonstrate that university researchers who collaborate with those in the private sector show research performance that is superior to that of colleagues who are not involved in such collaboration. But the impact factor of journals publishing academic articles co-authored by industry is generally lower than that concerning co-authorships with other entities. Finally, a further specific elaboration also reveals that publications with public–private co-authorship do not show a level of multidisciplinarity that is significantly different from that of other publications.