Compete, Cooperate, or Both? Integrating the Demand Side into Patent Deployment Strategies for the Commercialization and Licensing of Technology

Trigeorgis, Lenos; Baldi, Francesco; Makadok, Richard

Abstract

Profiting from innovation typically involves a choice between commercializing a patented technology in the product market to exploit proprietary advantage (i.e., competition) or licensing the technology to an incumbent in the market for ideas (a form of cooperation). A firm may thus deploy a patented technology in ways that may differ in their aggressiveness toward, or accommodation of, competitors. We analyze the deployment of patented technology employing either competition or collaboration modes, or both together (i.e., coopetition), as well as switching among them across demand states or over time, or delaying these choices until more information is available. We thus view a patent as a bundle of real options that enables a firm to manage not only the classic tension between commitment and flexibility but also the tension between competition and cooperation. We develop theory and propositions to predict which of these patent deployment modes will be chosen by an innovator facing an established firm as a function of the strength of the technology, market or bargaining power, and other market conditions, particularly the level and volatility of market demand.

Citation

Trigeorgis, L., Baldi, F., & Makadok, R. (2022). Compete, Cooperate, or Both? Integrating the Demand Side into Patent Deployment Strategies for the Commercialization and Licensing of Technology. Academy of Management Review, 47(1), 31-58. https://doi.org/10.5465/amr.2018.0119

• Journal Article Type: Article
• Acceptance Date: Dec 1, 2021
• Online Publication Date: Jan 10, 2022
• Publication Date: Jan 1, 2022
• Deposit Date: Feb 14, 2023
• Journal: Academy of Management Review
• Print ISSN: 0363-7425
• Electronic ISSN: 1930-3807
• Publisher: Academy of Management
• Peer Reviewed: Peer Reviewed
• Volume: 47
• Issue: 1
• Pages: 31-58
• DOI: https://doi.org/10.5465/amr.2018.0119
• Public URL: https://durham-repository.worktribe.com/output/1183012