The competitive advantage and acceleration trap of patents:Based on the relationship between patents and earnings of Chinese listed companies

Abstract

Abstract: On the basis of the patents quantities of Chinese listed companies and industry distribution of patents, a relationship between patents and earnings is empirically analyzed to test the two theories of patent competitive advantage and acceleration trap. It is found that the number of patents of listed companies have a rapid growth after 2000. However, patents distribute unevenly in every industry, they mainly concentrate on a few industry. The fact indicates that the technology innovation ability of Chinese companies has an unbalance developed. Overall, there is a positive and significant relationship between patents and earnings. That means the theory of patent competitive advantage generally holds in China. But there are some phenomena of acceleration trap in some industries. The rapid growth of patents in these industries does not create the value for the enterprises. The incremental patents and patents stock have different effects on earnings. The incremental patents have positive and significant effects on earnings. However for the patents stock, it is not the case. Therefore, there is an economic limitation of patents in China. The conclusion provides the new perspective and evidence for patents value. Some valuable suggestions and decision-making basis for enterprise independent innovation and the development of the patent system are put forward.

Key words: patent, earning, competitive advantage of patent, acceleration trap

CLC Number:

Xu Xin, Tang Qingquan. The competitive advantage and acceleration trap of patents:Based on the relationship between patents and earnings of Chinese listed companies[J]. Science Research Management, 2012, (6): 83-91.

References

[1] Hamel, G., and C.K. Prahalad. Competing for the future [J]. Harvard Business Review, 1994, 72(4): 122－128.
[2] Dosi, G. Source, procedures and microeconomic effects of innovation [J]. Journal of Economic Literature, 1988, 26(3): 1120－1171.
[3] 克里斯托夫-弗里德里克·冯·布朗. 创新之战[M]. 北京: 机械工业出版社, 1999: 65－113.
[4] Gayle. Philip G. Market concentration and innovation: new empirical evidence on the Schumpeterian hypothesis [J]. Working Paper, University of Colorado, 2001.
[5] Cockburn, I., and Z. Griliches. Industry effects and appropriability measure in the stock market’s valuation of R&D and patents [J]. American Economic Review, 1988, 78: 419－23.
[6] Griliches, Z. Productivity, R&D and basic research at the firm level in the 1970s [J]. American Economic Review, 1986, 76(6): 141－154.
[7] Phillips, K., and J. Wrase. Is Schumpeterian"creative destruction"a plausible source of endogenous real business cycle shocks? [J]. Journal of Economic Dynamics and Control, 2006, 30(11): 1885－1913.
[8] Barney, J. Firm resources and sustained competitive advantage [J]. Journal of Management, 1991, 8: 169－182.
[9] Grant, R.M. The resource-based theory of competitive advantage: Implications for strategy formulation [J]. California Management Review, 1991, 33(3): 115－135.
[10] Scherer, F. M., and D. Harhoff. Technology policy for a world of skew-distributed outcomes [J]. Research Policy,2000, 29(4-5): 559－566.
[11] Griliches, Z. Market value, R&D and patents [J]. Economic Letters, 1981, 7: 183－87.
[12] Bloom, N., and J. V. Reenen. Patents, real options and firm performance [J]. The Economic Journal, 2002, 112: 97－116.
[13] Griliches, Z., B. Hall, and A. Pakes. R&D, patents, and market value revisited: Is there technology opportunity factors [J]. Journal of Economics of Innovation and New technology, 1991, 1(3): 183－201.
[14] Toivanen, O., P. Stoneman, and D. Bosworth. Innovation and the market value of UK firms, 1989-1995 [J]. Oxford Bulletin of Economics and Statistics, 2002, 64(39): 39－61.
[15] 张波涛,李延喜,栾庆伟,包世泽.专利研发中"加速化陷阱"现象的实证研究——以机械制造业上市公司三种专利产出为例[J],科研管理, 2008(3): 89－97.
[16] 朱雪忠,乔永忠,万小丽.基于维持时间的发明专利质量实证研究[J],管理世界, 2009(1): 174－175.
[17] Hu, Albert Guangzhou. Knowledge flow in East Asia and beyond [J]. Working Paper, National University of Singapore, 2008.
[18] Gu, F. Innovation, future earnings, and market efficiency [J]. Journal of Accounting, Auditing & Finance, 2005, 20(4): 385－418.
[19] Hall, B., A. Jaffe and M. Trajtenberg. Market value and patent citation: A first look [J]. Working Paper, National Bureau of Economic Research, 2000.