Diversified or specialised: firms’ patent portfolio strategies under heterogeneous technology standards

ABSTRACTResearch has highlighted the role of patent portfolio strategy on firms' innovation without elaborating on how to layout the diversity of patent portfolios to improve innovation quality. Drawing on the resource-based view and institutional theory, this research attempts to extend patent portfolio–innovation debate by examining the moderating effects of policy or specifically, technology standard on the patenting–innovation relationship. We argue that the leverage of technology standard could help firms optimise patent portfolios by accessing information, reducing transaction costs, and promoting complementary innovation, and therefore leads to higher innovation quality. Moreover, considering heterogeneous technology standards, in the context of relatively complex and rapidly updated technology standards, specialised patent portfolios are more significant for firms to enhance substantive innovation. Our analysis of data from 729 Chinese manufacturing listed companies provides supports for both the moderating role of technology standard on the patent portfolio–innovation relationship. This paper contributes to patent management literature by elaborating upon the mechanisms of how technology standard can be leveraged to capture value from firms' patent portfolios.KEYWORDS: Technology standardspatent portfolioheterogeneityinnovation quality Disclosure statementNo potential conflict of interest was reported by the author(s).Additional informationFundingThis work was supported by the Major Program of the National Social Science Foundation of China [Grant Number 20&ZD124] and the National Natural Science Foundation of China [Grant Number 71973129].Notes on contributorsRong-jian YuRong-jian Yu is the dean and doctoral supervisor in the School of Business Administration of Zhejiang Gongshang University. His research interests are the global value chain and technological innovation.Rui DingRui Ding is a postgraduate student in the School of Business Administration of Zhejiang Gongshang University. Her research interests are technological innovation and technological standards.Li YaoLi Yao is an assistant professor in the International Business School of Zhejiang Gongshang University. His research interests are technological innovation management, enterprise innovation, and entrepreneurship, geographical economics.Jie CenJie Cen is an associate professor and doctor in the School of Business Administration of Zhejiang Gongshang University. His research interests are organisational theory and organisational innovation.Li-yao XiangLi-yao Xiang is a professor and lecturer in the School of Business Administration of Zhejiang University of Finance and Economics. Her research interests are the global value chain and technological innovation.Zhao DengZhao Deng is a postgraduate student in the School of Business Administration of Zhejiang Gongshang University. His research interests are technological innovation and technological standards.