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Determinants of firm’s propensity to patent its inventions: An evidence from Bengaluru high-tech manufacturing cluster

Deepak Chandrashekar (Department of Management Studies, Indian Institute of Science, Bangalore, India)
Bala Subrahmanya M.H. (Department of Management Studies, Indian Institute of Science, Bangalore, India)

Competitiveness Review

ISSN: 1059-5422

Article publication date: 15 July 2019

Abstract

Purpose

The purpose of this paper is to ascertain the factors that influence the decision of a firm in a cluster to patent its inventions.

Design/methodology/approach

This study adopts a stratified random sampling technique to choose 101 sample firms from the identified population of firms in a cluster. Further, it uses the primary data collection method to collect data from sample firms through semi-structured questionnaires and in-depth interviews with the top level management of the sample firms. Furthermore, it carries out binary logistic regression analysis to primarily examine the influence of capability and willingness factors of a firm on the propensity of a firm to patent its inventions.

Findings

The paper corroborates from the results of the binary logit model that invention capacity has a significant positive impact on a firm’s propensity to obtain patents. In addition, the absorptive capacity of a firm above a certain threshold is likely to have a significant positive influence on the decision of a firm to patent its inventions. On the one hand, between the two motivator factors conventional motivators and strategy related motivators, conventional motivator factor has a significant positive influence on a firm’s propensity to obtain patents. On the other hand, both the de-motivator factors (time, market and cost constraints and procedural issues) have a significant negative influence on a firm’s propensity to patent its inventions.

Originality/value

This paper makes a key contribution to the existing literature by empirically validating the influence of capability of a firm in terms of its invention and absorptive capacities, and willingness of a firm constituting motivator and de-motivator factors, on the decision of a firm to obtain patents, in the context of a firm in a high-tech manufacturing cluster in a developing economy.

Keywords

Acknowledgements

This article forms part of the corresponding author’s doctoral thesis entitled “Absorptive Capacity, Cluster Level Interactions, Innovation and Performance of Firms in the High-tech Cluster of Bengaluru”.

Citation

Chandrashekar, D. and M.H., B.S. (2019), "Determinants of firm’s propensity to patent its inventions: An evidence from Bengaluru high-tech manufacturing cluster", Competitiveness Review, Vol. 29 No. 4, pp. 375-400. https://doi.org/10.1108/CR-02-2018-0011

Publisher

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Emerald Publishing Limited

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