On the Effectiveness of Patenting Strategies in Innovation Races

On the Effectiveness of Patenting Strategies in Innovation Races

Jurgen Mihm INSEAD

Fabian J. Sting Erasmus University – Rotterdam School of Management

Tan Wang Independent

July 19, 2013
INSEAD Working Paper No. 2013/88/TOM

Which inventions should a company patent? Should it patent at all? Many companies engaged in an innovation race seek a patenting strategy that will protect their intellectual property, but not much is known about factors that determine the best strategy. Although scholars in various management, economics, and engineering disciplines have conducted research on patents, little work has addressed the normative issues pertaining to formation of an appropriate patenting strategy. We develop an inventory of patenting strategies and integrate them into a framework accommodating the contingencies that influuence their selection. Our simulation model characterizes the optimal patenting choices for different settings, and it captures the dynamics between firms that compete via strategic interactions. We identify those competitive dynamics driven by the choice of R&D strategy as the most salient determinant of the firm’s optimal patenting strategy. Thus our research contributes to establishing a contingency theory of patenting strategies.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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