Monday, March 12, 2012

WANG Tan, STING Fabian J., MIHM Jürgen
On the Effectiveness of Patenting Strategies
INSEAD Working Paper 2012/28/TOM

What patenting strategy should a company pursue? What factors should the choice of strategy depend on? Although di erent management, economics and engineering disciplines have conducted research on patents, little work has addressed normative questions around formulating appropriate patent strategies. In this paper we identify technology complexity, industry clock speed and the competitive dynamics of the industry as critical contingencies for formulating patenting strategies; we build a coherent inventory of patenting strategies and we integrate it into a common coherent framework. Through a simulation model, we identify competitive dynamics as the most crucial contingency and within our framework we characterize the optimal patenting choices. Our research makes a step towards a contingency theory of patenting strategies.