Commercialization of Innovations: An Overarching Framework and Research Agenda

Purpose – The commercialization of innovation, which is key to entrepreneurial success, is a combination of several entrepreneurial activities. Building on research from fields of management, strategy, entrepreneurship, economics, and marketing, the paper summarized the extant literature to develop a framework of commercialization and an agenda for future research. The paper aims to discuss these issues. Design/methodology/approach – Extensive review of literature, which was comprised of 194 articles across 62 journals in the fields of management, strategy, entrepreneurship, economics, and marketing. Findings – The literature was categorized into six broad themes of entrepreneurial activities: sources of innovations, types of innovation, market entry (capabilities and feasibility), protection, development, and deployment. Most of the research papers that were reviewed were concentrated on single theme. Practical implications – Given the identification of six key themes of entrepreneurial activity leading to the commercialization of innovations, research questions were posed as a means to move the research forward by integrating the themes. Originality/value – This is the first paper in its kind to integrate 194 papers from 62 journals to provide a comprehensive framework of commercialization of innovations

The value of patent knowledge: internal and external valuation

This dissertation consists of three essays analyzing how patenting firms and external investors value the knowledge describe in the patent document. A patent is a document that bestows a temporary exclusivity right (20 years from the filing date) over the described invention. In the patent document, one can find information about assignees, inventors, application date, priority date, a list of prior art (backward citations), the invention technological classification, and the claims describing the invention. Therefore, a patent disclose a rich set of information, which might reveal a firm’s valuable technological information and be used by competitors. Therefore, I study the patenting firm valuation of the information conveyed by the patent and how external investors value the patented knowledge. In the first chapter, I study publicly firms’ motivations to delay patent disclosure. The enactment of the American Inventors Protection Act (AIPA), in November 29, 2000, required U.S. patent applicants to have their patent application published 18 months after filing date but allowed them to opt for keeping it secret if they relinquished foreign patent protection. Using a sample of granted patents applied for by publicly traded companies, between 2000 and 2009, I investigate what drives large companies’ decision to keep a patent secret up to grant. Particularly, in this chapter I investigate the effect of technological crowdedness, strategic use of in-house knowledge stock, and invention radicalness on the decision of opting out of pre-grant publication. Results show a negative association between technological crowdedness and pre-grant secrecy, while radicalness and the use of in-house knowledge stock are positively associated with the likelihood of a patent application being secret until grant. In the second chapter, we use an event study methodology to investigate whether the stock market values innovation milestones. First, we investigate abnormal returns generated due to a patent grant event. Results point to investors, on average, not valuing the information disclosed in the patent document. We then test several explanations about why investors do not value patent grants on average: patent value is highly skewed, the number of patents granted is ever increasing and only some patents protect technology that results in successful products. By analyzing stock market reaction to the approval of a drug by the U.S. Food and Drug Administration (FDA), we show that the stock market is able to value innovation that results in a product. This suggests that innovation that will clearly generate sales revenue in the short run are highly valued by investors. We point out some implications of these results. Finally, in the third chapter, I look at the effect of firm’s technological diversification on firm value (Tobin’s q). Firm’s technological knowledge base contributes to identifying technological opportunities and answering demand changes. Therefore, a firm with broader technology base might be better able to cope with technology uncertainties achieving higher future returns. Technological classes of the firm’s patents were used to calculate an entropy index of technological diversification. Using a sample of 1,304 R&D intensive US firms over 16 years (1992-2007) I find that on average technological diversification has a positive and significant impact on firm value. Further, diving into industry level differences, results indicate that technological diversification matters to investors’ assessment of firm’s future cash flows in the electronic industry. On the other hand, in the chemical industry, technological diversification does not have a significant effect on Tobin’s q.Programa Oficial de Doctorado en Empresa y Finanzas / Business and FinancePresidente: Carlos J. Serrano; Secretario: Catalina Martínez García; Vocal: Eduardo Melero Martí

Uusien teknologiayritysten syntypolut

Since the economic crisis in 2008, the Finnish economy has not managed to pick up on its previous tracks and the challenges have been under discussion in the recent times. The challenges can be seen especially in the Finnish manufacturing industry that has not managed to properly recover since its slump. Despite the relative role of manufacturing decreasing overall, it is still important for the economy in creating jobs and growth. Especially important in this growth are new technological innovations that affect performance both on firm and national level, by contributing to growth, jobs, efficiency and renewal. Learning how these new technological innovations can appear and be fostered can then contribute on both on the national and firm level. Focusing on the equipment and machinery sector, the goal of the research is therefore to learn how new technology companies emerge. It will study the resources required and the ways to attain them in the process from discovery of an idea to commercialization. Interviews with case companies were chosen as the empirical part of the study. The case companies were chosen according to three criteria: operating in the equipment and machinery industry, located in Finland and year of incorporation after 2010. Finally, 21 companies were included in the sample. Semi-structured interviews were conducted to discuss the research themes with the companies. All the interviews were recorded and transcribed. The data was analyzed and examined based on the most relevant topics. The results indicate that most opportunities are based on discovery instead of a purposeful search. There are several sources where the initial opportunity may spawn: personal needs or needs within a business, market opportunity, personal interests and scientific research. The teams can consist of varying experience, bring important resources to the team and usually build from existing social networks. The companies have a narrow view of the ecosystem, focusing on their own needs and operations. The role of re-sources was particularly highlighted in the evidence. The companies often face challenges during their path, especially related to finance and marketing. Most companies require external funding for development and for their product to reach the markets, highlighting the importance to enable different ways to attain this. The companies usually have strong competences in technology but lack on the marketing side. Once their orientation turned from development to more to the commercialization side, they usually faced most challenges in establishing the business

Searching for Needles in a Haystack: Three Essays on the Role of R&D Partnerships in the Bio-Pharmaceutical Industry

This dissertation examines the relationships of established and young startup firms in environments characterized by rapid technological change in which exploration, i.e., moving away from current organizational routines and knowledge bases, is crucial for success. In the first essay, I combine perspectives on organizational myopia and organizational learning to examine how prior successes and prior failures solving R&D problems shape whether established firms go beyond local search in partnerships formations with startup firms. In line with the myopia perspective, I find that established firms tend to overlook partnering opportunities with novel elements of knowledge as well as opportunities that do not promise payoffs in the immediate future. The study further reveals that prior successes and failures very differently shape these myopic tendencies. While prior failures lead firms to pursue partnerships with novel elements of knowledge, prior successes make firms more receptive to partnerships with payoffs in the distant future. In the second essay, I draw on the literature on organizational learning and inter-organizational partnering to examine the relationship between startup innovation and startup market valuations. I find that startups pursuing innovations that substantially differ from the solutions pursued by established firms may face severe market value penalties as they lack both legitimacy and access to vital complementary assets. This penalty, however, is attenuated if startups commercialize their innovations through partnerships or if they pursue innovations in areas where established firms have failed in their own internal R&D attempts. The final essay draws on the literature on inter-organizational learning to more closely examine the ways in which established firms leverage the knowledge accessed from startup firms. I focus on loosely coupled partnerships that involve established firms paying a research partner for access to specific knowledge. While prior research has questioned the ability of firms to devise new and innovative solutions based on such partnerships, I find that innovation benefits from loosely coupled partnerships do not necessarily stem from the sourcing relationship per se but instead are contingent on the established firm\u27s experimental orientation to pursuing risky projects and its availability of financial and managerial resources. Overall, my dissertation enriches our understanding of the unique interdependencies between established and startup firms in environments characterized by rapid technological change

МЕТОДОЛОГІЯ ДОСЛІДЖЕННЯ ПРОЦЕСІВ ІНТЕЛЕКТУАЛІЗАЦІЇ В СУЧАСНІЙ ЕКОНОМІЦІ

The methodological bases of intellectual capital research aresubstantiated in the article.It is proposed to consider the methodology of research ofintellectualization processes in modern economy as the process ofintellectual property, as a certain result in terms of the availability ofintellectual resources; human capital, which is fundamental for theformation of innovation and development.The authors conducted a comparative analysis of approaches to theassessment of human capital. Based on the research data, it is determined that among the available approaches that assess human capital today are: cost approach, income approach and indicative approach.The directions of intellectualization in the modern economy aredetermined. The methods used by the World Intellectual PropertyOrganization (WIPO), the Organization for Economic Cooperation andDevelopment (OECD), the World Trade Organization (WTO), the World Bank, and the World Economic Forum are described. Indicators for assessing the effectiveness of the national institutional system for ensuring the quality of education and competitiveness of science using basic indicators as the main source of information are proposed. Therefore, the latest methodologies of intellectualization processes in the modern economy, although they contain a large number of indicators, but they are quite fragmentary.Summarizing the existing methodologies for the study of intellectualization processes in the modern economy, it was proposed to improve approaches to assessing intellectual capital by justifying the limits of application of existing metrics. As part of the systematization of existing scientific studies, existing scientific studies on the methodology of studying the processes of intellectualization in the modern economy should be divided into two major areas of knowledge, these studies relate to the processes of intellectual property capital, which is fundamental for the formation of innovation and development.In such conditions, further substantiation of the methodology ofintellectualization processes in the national economy is of considerablepractical interest.В статье обоснованы методологические основы исследованияинтеллектуального капитала.Предлагается рассматривать методологию исследования процессовинтеллектуализации в современной экономике как процессинтеллектуальной собственности, как определенный результат с точки зрения доступности интеллектуальных ресурсов; человеческий капитал, который имеет фундаментальное значение для формирования инноваций и развития.Авторами проведен сравнительный анализ подходов к оценкечеловеческого капитала. На основе данных исследования определено,что среди имеющихся подходов, которые оценивают человеческийкапитал сегодня можно выделить: подход по затратам, подход подоходам и индикативный подход.Определены направления интеллектуализации в современнойэкономике. Описаны методики, использующие Всемирная организацияинтеллектуальной собственности (ВОИС), Организация экономического сотрудничества и развития (ОЭСР), Всемирная торговая организация (ВТО), Всемирный Банк, Всемирный экономический форум. Предложены показатели оценки эффективности национальной институциональной системы обеспечения качества образования и конкурентоспособности науки с использованием базовых индикаторов как основного источника информации. Поэтому новейшие методики интеллектуализации процессов в современной экономике хоть и содержат большое количество показателей, но достаточно фрагментарны.Обобщая имеющиеся методологии исследования процессовинтеллектуализации в современной экономике, было предложеноусовершенствовать подходы оценки интеллектуального капитала за счет обоснования границ применения существующих метрик. В рамках систематизации существующих научных исследований существующие научные исследования по методологии изучения процессов интеллектуализации в современной экономике следует разделить на две основные области знаний, эти исследования относятся к процессам интеллектуального капитала, что является фундаментальным для формирования инноваций и развития.В таких условиях дальнейшее обоснование методологии процессовинтеллектуализации в национальной экономике имеет значительныйпрактический интерес.В статті обґрунтовано методологічні засади дослідження інтелектуального капіталу. Запропоновано методологію дослідження процесів інтелектуалізації в сучасній економіці розглядати як процес інтелектуальної власності, як певний результат щодо наявності інтелектуальних ресурсів; людський капітал, що є основною для формування інновацій та розвитку. Авторами проведено порівняльний аналіз підходів до оцінки людського капіталу. На основі даних дослідження визначено, що серед наявних підходів, які оцінюють людський капітал на сьогодні можна виділити: підхід за витратами, підхід за доходами та індикативний підхід. Визначено напрями інтелектуалізації в сучасній економіці. Описано методики, що використовують Всесвітня організація інтелектуальної власності (ВОІВ), Організація економічного  співробітництва та розвитку (ОЕСР), Світова організація торгівлі (СОТ),  Всесвітній Банк, Всесвітній економічний форум. Запропоновано показники оцінки ефективності національної інституційної системи забезпечення якості освіти та конкурентоспроможності науки з використанням базових індикаторів як основного джерела інформації. Тому новітні методології процесів інтелектуалізації в сучасній економіці хоча і містять достатньо велику кількість показників, проте вони мають досить фрагментарний характер. Узагальнюючи наявні методології дослідження процесів інтелектуалізації в сучасній економіці, було запропоновано удосконалити підходи оцінки інтелектуального капіталу за рахунок обґрунтування меж застосування існуючих метрик. В межах систематизації наявних наукових опрацювань виявлено, що наявні наукові опрацювання щодо методології дослідження процесів інтелектуалізації в сучасній економіці слід розділяти на дві великі галузі знань – це опрацювання, які стосуються процесів інтелектуальної власності як певного результату щодо наявності інтелектуальних ресурсів, а інша галузь знань має справу з людським капіталом, що є основною для формування інновацій та розвитку. В таких умовах подальше обґрунтування методології процесів інтелектуалізації в національній економіці має значний практичний інтерес

The Impact of Innovation Policy on Firm Behavior: An Empirical Analysis of the Energy Sector

In this dissertation, I address two distinctive research questions originating from the scientific literature on Energy Technology Innovation Systems (ETIS) (Gallagher et al. 2006; Gallagher et al. 2012; Grübler et al. 2012), and also provide interesting findings for the overarching literature stream of Innovation Systems (Freeman 1987; Lundvall 1988, 1992; Nelson 1984, 1988, 1993). The first research question discusses the impact of innovation policy on firm-level innovativeness and the second one analyses knowledge and learning within the ETIS. Papers 1 and 2 contribute to the first question and Paper 3 to the second one. Paper 1 indicates that institutional influences in terms of public R&D funding on a firm`s innovative performance are ambiguous as they increase patent quantity, but have no significant influence on patent quality. The results presented in Paper 2 give guidance how formal institutions (e.g. energy laws and regulations) affect an incumbent energy utilities’ business model. I find certain evidence that a substantial part of a firm`s scope, direction, degree, and frequency to innovate its business model corresponds to the frequency, predictability, velocity, and radicalness of legal environmental dynamics. In Paper 3, I contribute to the second research question on knowledge and learning by examining the diffusion of codified knowledge within the ETIS on an international and intersectoral level. In addition, I elaborate on what kind of inventor-related, inter-organizational, and other systemic determinants firms should develop to incorporate these knowledge flows in order to improve their innovativeness. For each paper, I apply the ETIS as the theoretical framework and combine it with further suitable theories, i.e., the resource-based view in Paper 1 (Wernerfelt 1984; Barney 1986, 1991; Dierickx, Cool 1989), the contingency framework on business model dynamics in Paper 2 (Saebi 2015), and the absorptive capacity theory in Paper 3 (Cohen, Levinthal 1989, 1990; Zahra, George 2002; Lane et al. 2006)

Perceived innovation in CVC investments : the case of incumbents with subsidiaries in Brazil

Orientadora: Profa. Dra. Fernanda Salvador AlvesDissertação (mestrado) - Universidade Federal do Paraná, Setor de Ciências Sociais Aplicadas, Programa de Pós-Graduação em Administração. Defesa : Curitiba, 08/03/2021Inclui referências: p. 86-111Resumo: A dinâmica do mercado e sua rápida evolução, impulsionada principalmente pela tecnologia, desafiam até as empresas mais tradicionais a mudar. Para evoluir e acompanhar as mudanças do mercado, as empresas buscam tecnologias fora de seus limites organizacionais. A abordagem da Inovação Aberta (IA) demonstrou ser uma forma eficaz de buscar inovações externas. Uma estratégia de IA é o Corporate Venture Capital (CVC), o investimento minoritário de grandes organizações em startups. Os objetivos do CVC são principalmente estratégicos, ou uma combinação de objetivos financeiros e estratégicos. Essa abordagem foi identificada como uma forma de explorar novas oportunidades tecnológicas fora da organização, bem como melhorar as capacidades de mudanças internas. Embora existam estudos sobre OI e CVC disponíveis, poucos são focados em analisar ambos os temas e os efeitos estratégicos do CVC em termos de resultados em inovação por tipo e intensidade. Além disso, os estudos disponíveis raramente se concentram na análise do fenômeno no Brasil. Portanto, o objetivo desta dissertação é enriquecer e estender a pesquisa existente, analisando como empresas com subsidiárias no Brasil percebem a inovação dos investimentos em CVC. A partir da avaliação de empresas que planejam ou já estão realizando investimentos em CVC, foi possível inferir que o objetivo principal para esse tipo de investimento é estratégico. Além disso, as organizações seguem um padrão, primeiro buscam implementar outras estratégias OI, consideradas menos arriscadas, antes de investir em novos empreendimentos por meio do CVC. Além disso, essa abordagem de investimento foi identificada como uma forma eficaz de grandes organizações se envolverem com startups, não apenas para aumentar o acesso à inovação, mas também para impulsionar capacidades internas de inovação.Abstract: Market dynamics and its rapid evolution, mainly driven by technological developments, challenge even the most traditional companies to change. In order to evolve, companies search for technologies outside their organizational boundaries. The Open Innovation (OI) approach has been demonstrated to be an effective way of pursuing external innovations. A type of OI strategy is the Corporate Venture Capital (CVC), the minority investment of large organizations in entrepreneurial ventures. The objectives of CVC investments are mainly strategic, or a combination of financial and strategic goals. CVC has been identified as a way of exploring new technological opportunities outside the organization, as well as improving internal change capabilities. Although there is a range of findings on OI and on CVC available, there are few studies focused on analyzing both approaches and the strategic results of CVC in terms of innovation outcomes by type and intensity. Moreover, the studies available are rarely focused on analyzing the phenomenon in Brazil. Therefore, the objective of this dissertation is to enrich and extend existing research by analyzing how incumbents with subsidiaries in Brazil perceive innovation from CVC investments. Based on the evaluation of companies that are planning or already are carrying out CVC investments, it was possible to infer that the main objective behind CVC investments is strategic. Additionally, organizations follow a pattern of first implementing softer OI strategies before investing in external new ventures through CVC. Moreover, CVC has been identified as a powerful approach to engage with external young ventures, not only to enhance access to innovation, but also to boost internal innovation capabilities