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• W251658821 abstract "ABSTRACT The creation and use of patents has been instrumental in the success of many firms, but the appropriate disposition of undeveloped patents may also affect firm performance, in addition to opening up opportunities for small business creation and influencing broader gains in national competitiveness. In this paper, we examine the propensity for firms to engage in the of patented technologies. We develop a series of propositions that explain and predict why firms choose to develop particular patents and why they choose certain types of disposition for those patents they do not develop. The impact of such donations on new business creation is discussed. INTRODUCTION The innovation process within organizations generally involves a progression from idea to development, through testing and refinement, and ultimately to technology transfer and (Afuah, 1998). Once a new product or technology is developed it is generally patented, and then the firm decides whether or not to pursue further development. When patents are developed they have the potential to provide the firm with an operating or product advantage that is difficult for other firms to duplicate. In many cases, patents enable the firm to gain and maintain a competitive advantage over its competitors for an extended period of time. It is not always advantageous for a firm to develop an existing patent, however. Patented ideas may not be pursued for commercial development for many reasons including insufficient market size and lack of strategic fit or immediate resources to continue (Simpson & Langloi, 1998). These patents can be licensed to other firms (Mandell, 1998), but many are shelved indefinitely or, in time, abandoned altogether. Since the competitive environment discourages organizations from sharing such innovations publicly, little is known about the potential value of these dormant patents to consumers or the economic environment. An alternative to allowing patents to lie dormant is to donate them to academic or not-for-profit institutions. In pursuit of their missions, academic and not-for-profit research institutions have begun to seek and accept patents as donations, generally with the intent that the recipient institutions will utilize their resources to further develop, refine, and eventually commercialize the ideas (Regalado, 1999). Patent donations give firms an additional option for disposing of a patent in a way that can be beneficial for the firm and for society. The donor organizations receive tax benefits for their donations, but cannot benefit from any future success reaped from or further development. Society benefits by being able to access a valuable patent that might otherwise go undeveloped. A recent report in Technology Review noted such donations ranging in value from $4 million to $35 million involving such corporations as Dow Chemical, Ford Motors, Eaton, and DuPont (Gifts That Keep Giving: Patents, 2000). For the donors, patent thus provides immediate and tangible tax benefits, while recipient institutions gain research opportunities along with any profits from commercialization. On a broader scale, the patent process stimulates increased cooperation between the private and public sectors, and unleashes dormant intellectual property to develop research interest, meet market needs and strengthen competitiveness at national and international levels. Research has found that firm growth in some countries can be constrained by lack of national support for research and technology-based development (Jones-Evans, Steward, Balazs, & Todorov, 1998). In addition, the National Science Foundation has enacted a number of programs aimed at increasing technological research, development, and transfer. Small businesses can play a vital role in the donation to commercialization process. Small businesses are often created during of a donated patent. …" @default.
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• W251658821 date "2001-03-01" @default.
• W251658821 modified "2023-09-24" @default.
• W251658821 title "Technology Patent Donations: Decisions That Impact Small Business Creation" @default.
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