Intellectual property strategies and firm growth evidence from Finnish small business data

The goal of this study is to shed light on the relationship between intellectual property (IP) strategies and firm growth. In brief, IP strategies are means of capturing returns on innovation investments. Employment effects and sales growth effects of innovations have been studied extensively in bot...

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Main Author: Heikkilä, Jussi
Other Authors: Kauppakorkeakoulu, School of Business and Economics, Taloustieteet, Business and Economics, University of Jyväskylä, Jyväskylän yliopisto
Format: Master's thesis
Language:eng
Published: 2012
Subjects:
Online Access: https://jyx.jyu.fi/handle/123456789/37793
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author Heikkilä, Jussi
author2 Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics University of Jyväskylä Jyväskylän yliopisto
author_facet Heikkilä, Jussi Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics University of Jyväskylä Jyväskylän yliopisto Heikkilä, Jussi Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics University of Jyväskylä Jyväskylän yliopisto
author_sort Heikkilä, Jussi
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description The goal of this study is to shed light on the relationship between intellectual property (IP) strategies and firm growth. In brief, IP strategies are means of capturing returns on innovation investments. Employment effects and sales growth effects of innovations have been studied extensively in both theoretical and empirical economic literature but prior research has seldom included IP strategies into the analysis. There is little knowledge, whether there exists growth rate differences among firms that use different IP strategies and do patenting firms effectively demonstrate stronger growth than their non-patenting counterparts. Present study considers IP strategies as potential firm growth determinants. Available data enables studying relation between firm growth and four IP strategies (patents, secrecy, speed and complements) among innovative Finnish small businesses. The small business perspective is important because previous studies have suggested that the patent system favors large companies at the cost of smaller firms. The data consists of merged survey and financial statement data of 469 innovative Finnish small businesses. The surveys were carried out in the beginning of millennium and employment and turnover figures cover years 2001-2010 and 2001-2009 respectively. Findings provide evidence that between 2001 and 2008 the turnover growth rates of sample firms differed statistically significantly between firms, which utilized different IP strategies. During the period patenting firms had statistically significantly higher turnover growth rates than firms relying on secrecy-based strategies and firms, which reported not to use any IP strategies. However, the difference in turnover growth rates between patenting firms and firms using “Open”-strategies (speed and/or complements) was not statistically significant. The results indicate that patenting may have provided competitive advantage for innovative small firms during 2001-2008 but the advantage was not significant in comparison to firms, which relied on speed and complements.
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In brief, IP strategies are means of capturing returns on innovation investments. Employment effects and sales growth effects of innovations have been studied extensively in both theoretical and empirical economic literature but prior research has seldom included IP strategies into the analysis. There is little knowledge, whether there exists growth rate differences among firms that use different IP strategies and do patenting firms effectively demonstrate stronger growth than their non-patenting counterparts. Present study considers IP strategies as potential firm growth determinants.\r\n\r\nAvailable data enables studying relation between firm growth and four IP strategies (patents, secrecy, speed and complements) among innovative Finnish small businesses. The small business perspective is important because previous studies have suggested that the patent system favors large companies at the cost of smaller firms. 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spellingShingle Heikkilä, Jussi Intellectual property strategies and firm growth : evidence from Finnish small business data intellectual property strategy innovation returns firm growth employment effect of innovation innovation policy incentives to innovate IPR system patent system Kansantaloustiede Economics 2041 innovaatiot tuotto yritykset kasvu työllisyysvaikutukset innovaatiopolitiikka immateriaalioikeus patenttijärjestelmät
title Intellectual property strategies and firm growth : evidence from Finnish small business data
title_full Intellectual property strategies and firm growth : evidence from Finnish small business data
title_fullStr Intellectual property strategies and firm growth : evidence from Finnish small business data Intellectual property strategies and firm growth : evidence from Finnish small business data
title_full_unstemmed Intellectual property strategies and firm growth : evidence from Finnish small business data Intellectual property strategies and firm growth : evidence from Finnish small business data
title_short Intellectual property strategies and firm growth
title_sort intellectual property strategies and firm growth evidence from finnish small business data
title_sub evidence from Finnish small business data
title_txtP Intellectual property strategies and firm growth : evidence from Finnish small business data
topic intellectual property strategy innovation returns firm growth employment effect of innovation innovation policy incentives to innovate IPR system patent system Kansantaloustiede Economics 2041 innovaatiot tuotto yritykset kasvu työllisyysvaikutukset innovaatiopolitiikka immateriaalioikeus patenttijärjestelmät
topic_facet 2041 Economics IPR system Kansantaloustiede employment effect of innovation firm growth immateriaalioikeus incentives to innovate innovaatiopolitiikka innovaatiot innovation policy innovation returns intellectual property strategy kasvu patent system patenttijärjestelmät tuotto työllisyysvaikutukset yritykset
url https://jyx.jyu.fi/handle/123456789/37793 http://www.urn.fi/URN:NBN:fi:jyu-201205081628
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