Technology Strategies in the Knowldge Economy. The Licensing Activity of Himont

The exchange of technologies and technological knowledge - through joint-ventures, partnerships, licensing, cross-licensing, R&D contracts - and the upsurge of markets for technology are main features of the "knowledge-based" economy. Competitive strengths are shifting from technological aspects to different levels of competitive behaviour, and companies are gradually changing their aptitude towards technology trading and exchange. The aim of this paper is to discuss the extent of technology licensing in chemicals, and specifically of one large firm - Himont - widely involved in licensing its process technologies. By analysing this case study, this paper explores the motivations for technology licensing, the managerial solutions that Himont adopted for licensing its technologies, and the implications of this strategy in terms of antitrust policy. One of the main result emerging from the analysis is the role of external technology suppliers. By increasing the potential competition in the product market, they create incentives for incumbent firms to license-out their technologies, and earn profits in the market for technology.Corporate Strategies, Technology Licensing, Chemical Industry, Division of Innovative Labour, Markets for Technology, Antitrust Policy.

Intellectual Property Rights and Market Dynamics

Two opposite models are currently operating in the modern economy, the strong intellectual property rights (IPR) model, and the open source/open science model. They have traditionally been applied to alternative institutional contexts. The strong IPR model has been associated to the business environment, while the open science model has been associated to the academic or research system. More recently, a strengthening of the IPR system has occurred in the public research system, and open science models have been adopted in private sectors like the open source software. This paper discusses these different models and their implications on the innovative activity of firms and economies, and the market dynamics. One of the main benefits deriving from a strong IPR system is that it encourages the entry of new technology-based firms and the commercialisation of technologies in markets for technologies. At the same time, an increased patent protection is also associated to potential costs, such as those arising from a excessive fragmentation of property rights, an abuse of patent protection for strategic reasons (sleeping and blocking patents), and an increase in litigation costs.Intellectual Property Rights, Patents, Patent Policy, Open Science, Open Source Software, Technology Commercialisation and Diffusion

Technology Transfer Offices (TTO) in Italian universities: what they do and how they do it

The contribution of the knowledge producing sector to the innovative activity of firms, and to economic development in general is widely recognised. Nevertheless, several new important subtopics have emerged during the last two decades, which represent increasingly important research issues for academics and policy makers.

Industrial R&D in Italy: What are new dynamics of exploitation and exploration?

This paper aims at exploring the dynamics of industrial R&D activities in large companies. Through the use of four case studies of the largest R&D centers of Italian firms operating in different industrial sectors (telecommunications, automotive, rubber and plastics, and semiconductors), we try and compare the different approaches that private R&D centers have chosen in the recent past, to face the challenges of growing complexity in their research areas and increasing constraints in budgets devoted to R&D activities. The difficulties Italian companies face in the management of their R&D investments have to do with the specificities of a fairly weak national innovation system as well as with challenges that are common to other national and industrial contexts.

Industrial R&D in Italy: Exploration and Exploitation Strategies in Industrial R&D

This paper discusses four types of strategic decisions in technology management in established firms. It is well known that deciding between exploration and exploitation in R&D, and eventually combining the two strategies, is a crucial issue. However, we argue that more attention, both from a theoretical and an empirical perspective, should be paid to the strategic solutions which are implemented as a consequence of such decisions, as well as to the various types of interactions between strategic decisions and organizational solutions in industrial R&D. Here we apply to R&D management concepts derived from the industrial dynamics literature, and use a theoretical framework to describe and analyse four case studies concerning the largest R&D centres of Italian firms operating in different industrial sectors (telecommunications, automotive, communication and cables, and semiconductors). The different approaches that those private R&D centres have chosen in their recent past are compared and discussed. More specifically, we try and analyze the patterns of exploration, technology transfer and commercialization that industrial R&D labs have adopted in order to combine short-term objectives of exploitation of research results and competencies, and long-term goals of exploration of new technological trajectories. The proposed approach is based upon the use of two dimensions: first, the type of technological change, and second the control of complementary assets and the existence of a dominant design. We argue that the interpretation of the four case studies can represent a useful basis for discussion among R&D managers as well as innovation and technology management scholars.

Market orientation and academic spin-off firms

Purpose: Academic spin-off firms are considered an important mechanism to transfer technological knowledge from university to industry, although they often show a low growth rate. One possible cause is the lack of proper marketing capabilities, since spin-off managers tend to reduce the role of marketing to the implementation of mere tactical activities. This study analyses whether spin-off firms adopt a market orientation and the effect it produces on firms' economic and innovation performance. Design/methodology/approach: The empirical analysis is based on both quantitative survey data and in-depth interviews, referring to a unique sample including Italian and Spanish spin-off companies. Findings: Results highlight that MKTOR and MARKOR measurement scales show different abilities to capture the implementation of market orientation by sampled firms. We find that the generation and dissemination of information on customers and competitors directly affect firms' ability to develop technological innovations and gain profits. Nevertheless, market orientation also constitutes a challenge to spin-offs, and may eventually generate inefficiencies when external technological conditions require firms to respond quickly to environmental stimuli. Practical implications: The findings of this study are relevant to academic spin-off managers who are responsible for adopting, implementing and maintaining market orientation strategies under different environmental conditions. Limitations: The characteristics of sample used for the quantitative analysis may limit the generalization of results. Originality/value: Even though the market orientation concept has been largely analyzed, no previous study has examined its application by academic spin-offs. By employing qualitative and quantitative analyses we provide novel insights in this respect

US market entry by Spanish pharmaceutical firms

This work explores the factors that spur firms’ propensity to enter in international markets. Among the whole population of Spanish firms active in the pharmaceutical sector (over the period 1995-2004), we identify those firms that have entered the US market by assessing whether they have filed at least a trademark in the US Patents and Trademarks Office. By means of a hazard model, we empirically estimate which firm’s characteristics affect the probability of entry in the US market in a given year. Results show that technological capabilities (breadth and depth of firms’ patent base), and the firm’s cost structure explain the entry in the US market with a branded product. Moreover, our evidence shows that entry strategies based on differentiation advantage (technological diversification) and strategies based on cost advantage (scale economies) are exclusive and do not mix well each otherForeign market entry, Internationalization strategies, Firm-Specific advantages, Competitive advantage, Innovation and R&D, Patents, Trademarks

Marketing for technologies: S-D Logic and the Open Innovation paradigm

Firms have been modifying their innovation management processes to generate, implement and exploit new technological knowledge. A gradual shift from a closed to an open model of innovation has been the recurring pattern of this change. Firms have to revise their overall strategic orientation to adapt their managerial procedures according to the Open Innovation (OI) paradigm. The New Service-Dominant (S-D) Logic can offer a useful guideline to firms in the implementation of an OI model. This paper presents the bases of the OI paradigm by means of the S-D Logic mindset. For each of the premises characterizing the S-D Logic, instances of firms that have implicitly adopted the OI paradigm are provided. We discuss how the S-D Logic can be put in practice within the context of the OI model

The Chemical Sector al System. Firms, markets, institutions and the processes of knowledge creation and diffusion

According to the Sectoral Systems of Innovation and Production approach, the analysis of a specific sector has to describe its knowledge and technological base, existing complementarities among knowledge, technologies and products, the heterogeneity of agents, their learning processes and competencies, the role of non-firm organisations, and the presence of (co)evolutionary processes. This study applies this theoretical framework to the chemical industry, and examines evolution and co-evolution processes that have characterised this industry over its 200 years history. It emerges a strong dichotomy in industry dynamics. On the one hand, big discontinuities can be observed in knowledge and technological dimensions, which implied a major change in industry structure and a growing division of labour at the industry level. On the other hand, a big continuity can be observed as well, mainly in companies life. Indeed, one important feature of the chemical industry is that between small and large companies, markets, research institutions and other organisations there has been a continuous process of co-evolution, with firms playing the central role within the chemical system.Chemical Industry, Industry Dynamics, Networks, Markets for Technology, Division of Innovative Labour, Networks of Inventors, Patents, Technology Licensing.

Understanding the role of attitude components in co-branding: an application to high-tech, luxury co-branded products

This study addresses co-branding between firms belonging to unrelated value chains –high-tech products and luxury brands (HLCPs) – to explore how consumers? attitude drive the success of HLCPs. The study applies the tri-component attitude model (as opposed to attitude as a whole) that uses affect and cognition to predict purchase intention of co-branded products. Cultural differences (Spanish and Taiwanese) in consumers? behavior are also assessed. Data collected in a survey show that Spanish and Taiwanese consumers adopt different purchasing processes: while Spanish consumers place more importance on product-related thoughts and follow a Feel-Learn-Do sequence in purchasing HLCPs, Taiwanese consumers follow a Learn-Feel-Do purchasing process.Co-branding, Attitude, Affect/cognition, High-tech, Luxury, Cross-cultural