Patent portfolio races in concentrated markets for technology

Patent application numbers grow exponentially in many industries, a phenomenon that has been linked to high fragmentation of patent ownership. Contradicting these findings and theo- retical arguments, we show that such fragmentation is not a precondition for sudden and strong increases in patenting. We describe and analyze a patent portfolio race in an industry with highly concentrated patent ownership, namely the newspaper printing machines oligop- oly. Triangulating data from patent analysis, interviews, and document research, we find that patent strategy change by one player triggered a patent portfolio race with its main competi- tor. Implications for managers are that increasing patent output may yield temporary advan- tages but, as in a price war, implies the risk of a prisoner’s dilemma-type outcome with poten- tially severe implications for effectiveness and efficiency of the innovation process.     «

Patent application numbers grow exponentially in many industries, a phenomenon that has been linked to high fragmentation of patent ownership. Contradicting these findings and theo- retical arguments, we show that such fragmentation is not a precondition for sudden and strong increases in patenting. We describe and analyze a patent portfolio race in an industry with highly concentrated patent ownership, namely the newspaper printing machines oligop- oly. Triangulating data from patent analysis,...     »