Post on 21-Jun-2020
1
APPROPRIATING
INNOVATION VALUE
Presented by: Elona Marku
In this lecture…
What is the appropriation of the innovation value?
Why is it important to appropriate the innovation value?
How do we appropriate the innovation value?
More insights on:
• The main methods used to extract information from patent data
• Patent free-of-charge databases
2
2
?
WHAT IS THE APPROPRIATION OF
THE INNOVATION VALUE?
3
WHAT IS THE APPROPRIATION OF THE
INNOVATION VALUE?
The degree of control on the technical progress and the extra profits that are generated by the firm (see Dosi, Antonelli, Malerba)
It refers to the benefits of the efforts of the innovation process
It is the basis underlying the choice to innovate rather than imitate
4
3
?
WHY IS IT IMPORTANT TO
APPROPRIATE INNOVATION VALUE?
5
WHY IS IT IMPORTANT TO
APPROPRIATE THE INNOVATION VALUE?
To gain and sustain the
COMPETITIVE ADVANTAGE
David Teece (1998) argues that the capacity of the firm to appropriate the benefits of its investment in technology depends on two factors: • the firm’s capacity to translate its technological advantage
into commercially viable products or processes
• the firm’s capacity to defend its advantage against imitators
6
4
? How do we appropriate the innovation value?
7
The concept of the appropriation of the
innovation value is strictly connected and
strongly intertwined with the tools that
guarantee the innovation appropriability
INTELLECTUAL PROPERTY
How do we appropriate the innovation value?
8
5
Other factors that influence the firm’s
capacity to appropriate innovation value
Accumulated tacit knowledge
Lead times and after-sales service
The learning curve
Complementary assets
Product complexity
Standards
Pioneering radical new products Source: Tidd (2006)
9
OVERVIEW OF INTELLECTUAL PROPERTY
Legal right What for? How?
Copyright Original creative or
artistic forms
Trademarks Distinctive identification
of products or services
Use and/or
registration
Registered
designs Registration
Patents New inventions Application and
examination
Exists
automatically
Trade secrets
External appearance
Valuable information
not known to the public
Reasonable efforts
to keep secret
10
6
SOME IP FOUND IN A MOBILE PHONE
Patents:
• Data-processing methods
• Semiconductor circuits
• Chemical compounds
• …
Copyrights:
• Software code
• Instruction manual
• Ringtone
• …
Trademarks:
• Made by "Nokia"
• Product "N95"
• Software "Symbian", "Java“
Trade secrets: ?
Designs (some of them registered):
• Form of overall phone
• Arrangement of buttons in oval shape
• Three-dimensional wave form of buttons
• …
© Nokia
11
PATENTS A legal title which grants the
holder
• the exclusive right to prevent
others from making, using or
offering for sale, selling or
importing a product that infringes
his patent without his
authorisation
• in countries for which the patent
was granted
• for a limited time (up to 20 years)
In return for this protection, the
holder has to disclose the
invention to the public
12
7
WHAT DOES A PATENT LOOK LIKE?
Bibliographic information
• Inventor, proprietor, date of filing, technology class, etc.
Abstract
• Around 150 words as a search aid for other patent applications
Description
• Summary of prior art (i.e. the technology known to exist)
• The problem that the invention is supposed to solve
• An explanation and at least one way of carrying out the invention
Claims
• Define the extent of patent protection
Drawings
• Illustrate the claims and description
13
WHAT EXACTLY CAN BE PATENTED?
In most countries, patents are not granted for business methods or rules of games as such, or for methods of treatment, diagnostics and surgery on the human or animal body.
Patents protect inventions which solve technical problems:
• chemical substances, pharmaceuticals
• processes, methods, uses
• products, devices, systems
For an invention to be patented, it must usually be
• new to the world (i.e. not available to the public anywhere in
the world)
• inventive step (i.e. not an "obvious" solution)
• susceptible of industrial application (utility)
14
8
PATENTING
Advantages
• Exclusivity enables
investment and
higher returns on
investment
• Strong, enforceable
legal right
• Makes invention
tradable (licensing)
Disadvantages
• Reveals invention
to competitors
(after 18 months)
• Can be expensive
• Patent enforceable
only after grant (this
can take 4-5 years)
15
COPYRIGHTS
Copyright protects any production of the human mind,
such as literary and artistic works • This production must be an original expression and not a mere idea
Economic rights: • relate to the economic exploitation of the work
• are freely transferable or licensable
Moral rights: • relate to a moral interest of the author
• are always retained by the author
It confers legal protection for a limited period of time
(minimum 50 years after the author’s death)
16
9
TRADEMARKS
A trademark is any sign, capable of being represented
graphically, which distinguishes the goods and services of
one undertaking (company) from those of another
Many different types:
• word, figurative, colour, shape
Grounds for refusal
• Distinctiveness (absolute)
• When peaceful co-existence of marks is impossible (relative)
Potentially perpetual (renewal every ten years)
Risk of loss of protection if:
• not used after five years
• found to be invalid
17
DESIGNS
A design is the outward appearance of the whole or parts of a product resulting from its features
A product is any industrial or handicraft item
Requirements for protection: novelty,
individual character
Exclusive right
Principle of territoriality
Duration • registered design rights: maximum 25 years
• unregistered design rights: 3 years
18
10
TRADE SECRECY
• Formula, pattern, device or compilation of information,
unknown to others, that gives competitive advantage
• Common law or statute
• Unlimited Duration / No registration
• Cost (of maintaining secrecy, security, litigation)
• Reverse engineering, independent development
• Examples: (unpatented inventions, laboratory
notebooks, planning and customer information;
Financial, accounting, recruiting and legal information)
19
• Patent analysis is defined by researchers as the method
used to transform patent data into useful information
• Patent citation analysis is a citation-based patent study
which uses a bibliometric technique to analyze the quality
of patents. It links patents at the same way that the
science citation links the papers’ references
• Patent trends provide a more dynamic overview to
monitor patent activity and to identify technological
change and innovation convergence at a firm-level and
sector-level
20
METHODS USED TO EXTRACT
INFORMATION FROM PATENT DATA
11
PATENT QUALITY and PATENT VALUE
Optional
More than 50% of the overall patent portfolio value is derived from just 3% of all patents More than 80% of the overall patent portfolio value is derived from just 10% of all patents
Source: Ceccagnoli et al., 2005.
21
Patent quality is found to have a positive relationship with patent value
The three dimensions of patent quality based on citations:
• Impact • Originality (depth) • Generality (breadth)
PATENT CITATION-BASED INDICATOR
• IMPACT: number of forward citations. It
measures the influence of patents in further
inventions. More citations a patent receives,
higher its importance and consequently its
value is.
22
PATENT QUALITY (Hall et al. 2001)
12
23
IF VIEWS WERE FORWARD CITATIONS…
2.320.752.198 vs 1.697.477
Which song (patent) would have more impact?
ORIGINALITY: it uses the technological
classification codes of the backward citations
to measure the depth of technological
knowledge embodied in the patent.
Originality =
sij represents the forward citations of patent i that have class
code j, out of ni patent technology classes.
24
ORIGINALITY (Hall et al. 2001)
13
IF THE CLASS CODES WERE COLORS…
Which shoes closet
would be more original?
25
GENERALITY: uses the technological
classification codes of the forward citations
to measure the breadth of the technological
knowledge embodied in the patent.
26
PATENT QUALITY (Hall et al. 2001)
Generalityi =
in
j
ijt1
21
tij represents the forward citations of patent i that have class code j, out of ni class codes.
14
ABOUT GENERALITY…
Recycled bicycle tire foxing tape for
footwear and method of making footwear US 7874084 B2
27
Patent technological trends allow to
identify not only the leading technologies
that are developed in the market but also to
have deeper insights on the sector and firm
strategy.
28
PATENT TECHNOLOGICAL TRENDS
15
29
PATENT TECHNOLOGICAL TRENDS cont’d
PATENT TECHNOLOGICAL TRENDS cont’d
General Electric (1995-2009)
30
16
• ERICSSON
31
PATENT TECHNOLOGICAL TRENDS cont’d
Searching for patents can be easy ...
Free worldwide patent information is available at
http://worldwide.espacenet.com/
32
17
"Spherical object with floppy filaments"
Toy ball
Sometimes, the applicant simply doesn't want his patent to
be found …
… but some basic knowledge is needed!
33
OTHER PATENT FREE-OF-CHARGE
DATABASES
http://appft.uspto.gov/netahtml/PTO/search-bool.html
www.google.com/patents
34
18
Summary of the lecture…
Appropriation of the innovation value
• Patents
• Copyrights
• Industrial Design
• Trademarks
• Secrecy
Particular focus on:
• Patent analysis
• Patent citation analysis
• Patent trends (technological dimension)
• Patent free-of-charge databases
35
QUESTIONS?
THANK YOU FOR YOUR
ATTENTION!
For contacts: elona.marku@unica.it
36