Patents and corporate value creation: theoretical approach
| Published date | 31 July 2007 |
| Pages | 431-443 |
| Date | 31 July 2007 |
| DOI | https://doi.org/10.1108/14691930710774858 |
| Author | Ludmila Striukova |
| Subject Matter | Accounting & finance,HR & organizational behaviour,Information & knowledge management |
Patents and corporate value
creation: theoretical approach
Ludmila Striukova
Management Studies Centre, University College London, London, UK
Abstract
Purpose – The purpose of the paper is to provide a taxonomy of values created by corporate patents.
Design/methodology/approach – Following an extensive literature review, value created by
corporate patents is analysed according to four categories: embedded in individuals; embedded in
systems and structures; market; and non-market. This paper demonstrates that the value created by a
company can reside in any of these four dimensions.
Findings – One of the main findings is that value created by corporate patents can be both market
and non-market and can be embedded both in individuals and in systems and structures.
Organisations can apply this framework to assess their needs and abilities with regard to value
creation from patents.
Research limitations/implications – This research sets the background for an empirical study
which can be conducted to confirm the theory.
Practical implications – Thepaper is a useful resource for patent managers and policy-makers, as
it provides them with a tool to analyse value embedded in patents and guidelines how to develop this
value further.
Originality/value – The analysis presented here differs from the traditional evaluation of patents
through patent statistics and it offers a theoretical framework which can be used by companies for the
analysis of their patent portfolio. This paper provides insight into the possibilities and problems that
underpin value creation from patents and shows what type of value can be created and how this value
can be extracted.
Keywords Patents, Intellectual property, Valueadded
Paper type Conceptual paper
1. Introduction
Recent studies on intellectual capital have encouraged companies to regard intellectual
capital as an asset. A number of studies have analysed intellectual capital through the
prism of different dimensions (Kaplan and Norton, 1992, 2004; Hudson, 1993;
Edvinsson and Malone, 1997; Sveiby, 1997; Stewart, 1997; Roos et al., 1998; Sullivan,
1998; Teece, 2000). Such studies highlighted the ability of intellectual capital to create
value for a company, and also considered the value drivers (Namasivayam and Denizci,
2006; Marr et al., 2004). These studies have created a solid background that can be used
to take research on intellectual capital further, namely to examine the value created by
different elements of intellectual capital.
One of the elements of intellectual capital – intellectu al property rights (IPRs) – has
become extremely important over the last years. Davis (2004) argues that there are four
main reasons why the role of IPRs has changed. First of all, this is due to the fact that
intangible assets are now more often recognised as sources of competitive advantage.
Other reasons for IPRs becoming more important include:
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1469-1930.htm
Patents and
corporate value
creation
431
Journal of Intellectual Capital
Vol. 8 No. 3, 2007
pp. 431-443
qEmerald Group Publishing Limited
1469-1930
DOI 10.1108/14691930710774858
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