The impact of the timing of patents on innovation performance

Bongsun Kim, Eonsoo Kim, Douglas J. Miller, Joseph T Mahoney

Research output: Contribution to journalArticle

Abstract

In the context of industry standard-setting, firms face the strategic decision of whether to move faster than competitors or wait for more information that reduces uncertainty. These decisions are even more challenging if there are multiple standards, and if there are benefits to belonging to more than one standard. This paper examines the effect of the timing of patents on a firm's innovation performance. The strategic logic of real options posits that patent timing is determined by the tension between the value of preemption and the value of waiting. We analyze 680 DVD disc patents in DVD patent pools to test the effect of the timing of patents on innovation performance. Consistent with real options logic, under high uncertainty, the later the timing of the patent, the higher the innovation performance, while under low uncertainty there is an early-mover advantage.

Original languageEnglish (US)
Pages (from-to)914-928
Number of pages15
JournalResearch Policy
Volume45
Issue number4
DOIs
StatePublished - May 1 2016

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Videodisks
Innovation
Uncertainty
Innovation performance
Patents
Industry
Logic
Real options

Keywords

  • Innovation performance
  • Licensing
  • Real options
  • Timing of patents

ASJC Scopus subject areas

  • Strategy and Management
  • Management Science and Operations Research
  • Management of Technology and Innovation

Cite this

The impact of the timing of patents on innovation performance. / Kim, Bongsun; Kim, Eonsoo; Miller, Douglas J.; Mahoney, Joseph T.

In: Research Policy, Vol. 45, No. 4, 01.05.2016, p. 914-928.

Research output: Contribution to journalArticle

Kim, Bongsun ; Kim, Eonsoo ; Miller, Douglas J. ; Mahoney, Joseph T. / The impact of the timing of patents on innovation performance. In: Research Policy. 2016 ; Vol. 45, No. 4. pp. 914-928.
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