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- W2766291733 abstract "This paper explores how firms determine their patenting strategy when firms are faced with different performance situations. The patenting strategy in this study is defined in terms of engaging more in inventions with more risk and higher profit or taking more incremental improvements with less risk and lower profit. We develop two game-theoretical models to analyze how different kinds of performance discrepancy encountered by a firm influence the evolutionary process of the firm’s propensity to patenting strategy. Then an empirical analysis of 1,921 listed companies in China is undertaken to test the propositions derived from the two game-theoretical models. The results reveal firm’s decision-making pattern of patenting strategy. Specifically, a firm with higher performance than its aspiration will prefer engaging more in invention-type patents while a firm with lower performance than its aspiration will invest more in incremental improvement patents. In addition, else being equal, the patenting strategy with a higher level of success probability will be more appealing to firms, no matter what kinds of performance gap they have." @default.
- W2766291733 created "2017-11-10" @default.
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- W2766291733 date "2017-08-01" @default.
- W2766291733 modified "2023-09-26" @default.
- W2766291733 title "Invention or Incremental Improvement?" @default.
- W2766291733 doi "https://doi.org/10.5465/ambpp.2017.11003abstract" @default.
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