Angel or devil? a study of the threshold effect of patent strategy on the relationship between patent thicket and corporate market value

Patent strategies are an effective means of mitigating the negative effects of patent thickets on corporate market value. In reality, however, inappropriate patent strategies tend to exacerbate the negative effects of patent thickets. In this study, we used 2009–2019 panel data of 419 Chinese electronic equipment manufacturing companies, applied a panel threshold model, and analysed the influence mechanism. We empirically investigated the boundary dividing patent application, patent withdrawal, patent portfolio, and patent maintenance strategies from 'angel' to 'devil' and the influence mechanism of patent thickets on corporate market value. This study arrives at several conclusions. (i) Patent thickets exert a negative effect on corporate market value. (ii) Patent application and withdrawal strategies play a fully mediating role in the negative effect of patent thickets on corporate market value, while patent portfolio and maintenance strategies play a partially mediating role. (iii) Patent application, withdrawal, and maintenance strategies exhibit a double threshold effect, while patent portfolio plays a single threshold role. This study enriches the research on patent thickets.