Determinants of firm’s propensity to patent its inventions: An evidence from Bengaluru high-tech manufacturing cluster
Article publication date: 15 July 2019
The purpose of this paper is to ascertain the factors that influence the decision of a firm in a cluster to patent its inventions.
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.
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.
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.
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”.
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
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