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This paper aims to explore whether firms’ performance determines innovation using a sample of Indian manufacturing firms. The impact of innovation on firms’ performance across specific countries has been discussed in the literature. However, the effect of firms’ performance on innovation output, especially for a developing country like India, remains an open question. Against this backdrop, this paper investigates whether firms’ performance determines innovation in Indian manufacturing firms.

The authors use patent filing information to instrument innovation and total factor productivity to instrument firms’ performance. The patent data are collected from the Patent Search and Analysis Software database and firm-level data from the Centre for Monitoring Indian Economy’s Prowess database. The study uses a sample of 309 Indian manufacturing firms from 2005 to 2021. Given the count nature of the data set used in this study coupled with over-dispersion issues, the authors have used the negative binomial regression to estimate the empirical specification of the models. There could be a possible problem of endogeneity due to the contemporary nature of innovation and firms’ performance. Therefore, to address the possible issues of endogeneity in the model, the authors have used the Generalized Method of Moments (GMM) estimators for more robustness checks of the empirical results.

The empirical results exhibit a positive and significant impact of firms’ performance on the innovation output, validating that firms’ performance determines innovation in Indian manufacturing firms. The posterior estimation results using GMM estimation also corroborate that firms’ productivity is a determining factor for the innovation output of Indian manufacturing firms. Furthermore, empirical results exhibit that the ex ante innovativeness of the firms substantially affects the current innovation. This validates that the firms’ prior experience, learning by doing and past innovative efforts are more likely to precipitate more innovation in the current period.

This paper’s main contribution is empirically estimating whether firms’ performance determines innovation, which is hardly discussed in the existing innovation literature, specifically using Indian manufacturing industries. Further, it adds to the existing literature in two other prominent ways. First, this paper investigates whether firms require ex ante expertise to innovate or if a firm starting from scratch can innovate significantly without any hindrances. Second, it enriches the literature by instrumenting innovation in output terms with the patent application against input measures of innovation, such as research and development expenditures, acquisition of machinery and equipment, while discussing the relationship between firms’ performance and innovation, specifically in the context of a developing economy like India.

Prior research has produced conflicting results on the relationship between firm-level patenting activity and financial performance. To identify a factor that impacts the results, this study tests whether the level of customer-base concentration (defined as focusing on a small number of major customer sales transactions) changes the relationship between firm-level patenting activity and financial performance (return on assets: ROA).

Using a longitudinal secondary dataset from Japanese manufacturers from 1991 to 2016, this study investigates the interaction effect between firm-level patenting activity and customer-base concentration. With additional analysis using multiple profitability measures, this study provides robust evidence that customer-base concentration is an important factor in changing the relationship between firm-level patenting activity and financial performance.

The analysis results show that there is a positive relationship between firm-level patenting activity and ROA. In addition, this relationship is positively moderated by the customer-base concentration. This means that suppliers can improve the performance of the patenting activity by concentrating on their customer base.

By identifying a moderating factor between patenting activity and financial performance, this study advances the interpretation of conflicting results in patent research. Moreover, this study reveals a situation where customer-base concentration, which has a direct negative impact on financial performance, leads to better financial performance. This also indicates that firm-level patenting activities may compensate for the negative aspects of customer-base concentration.

In today’s economy, intangibles have become more important than physical assets for firm success. In particular, small and medium enterprises (SMEs) registered an increasing trend in patenting, exceeding large firms in the number of patent registrations. In this context, the purpose of this paper is to investigate the association between patents and SME sales performance, taking into consideration also patent quality.

The approach uses panel regression model to investigate the relationship between patenting and sales, controlling for firm size and firm age. The authors adopt a purposive sampling technique focusing on a sample of Italian SMEs in the mechanical industry.

The results show that the count of patents do not have any effect on sales performance, while the number of jurisdictions where the protection is extended produces a positive and significant result.

The main implication for SME entrepreneurs and managers is that relying on a large number of patents does not automatically lead to higher performance; instead, filing those patents which protect particularly valuable innovations could be more productive in terms of SME sales performance Moreover, the results suggest that a longer time lag between patent filing and SME sales performance might be possible.

This paper is one of first attempts to shed light on the issue regarding SMEs patent quality. It is notable that the quality of patents in terms of geographical scope is positively associated to SME sales performance.

Previous studies employing the behavioral theory of the firm have not explicitly taken the roles of decision makers and corporate governance into consideration. The purpose of this paper is to fill in this gap by integrating CEO overconfidence and discretion into the performance feedback mechanism.

Financial data were collected from 1,730 Chinese listed companies in the period 2011–2015. Firm-level patent application data were collected for 1988–2015 to measure firm patent application rhythm. Hypothesis testing relied on the fixed effect panel data model.

There is a positive relationship between performance discrepancy and a firm’s patent application rhythm. CEO overconfidence will weaken this positive relationship. The negative moderating effect of CEO overconfidence will be less pronounced when CEO discretion is high.

To the best of the authors’ knowledge, this work is the first empirical study that investigates the roles of CEO overconfidence and discretion in shaping the performance feedback mechanism.

Firms may suffer differently from the patent thickets in a particular technology field. This paper explores how patent thickets affect the financial performance of firms with different patent propensities and technological leadership.

From the perspective of patent strategy, the authors study how patent propensity, the possibility that a firm applies for patents, affects the patent thickets and financial performance. Additionally, this paper uses patent stock to measure technological leadership, the degree to which a firm can develop, maintain and enhance technology and product innovation, to study the impact of patent propensity on firms. A three-way interaction model is used to explore the relationship among patent thickets, patent propensity, technological leadership and financial performance based on an unbalanced panel of 69 Chinese telecommunication equipment firms from 2008 to 2019.

The authors find that patent propensity positively moderates patent thickets and financial performance. Notably, technological leadership negatively moderates the moderating effect of patent propensity.

This paper enriches the heterogeneous literature of patent thickets and financial performance. It sheds light on the fact that firms with different technological leadership may use different patent strategies to cut through patent thickets.

As a resource input in enterprise technological innovation, patents play an important role in influencing innovation performance. The purpose of this paper is to investigate the impact of fuzzy front end (FFE) patent management on innovation performance, and the mediating role of patent commercialization and the moderating effect of technological lock-in.

This paper adopts a questionnaire survey from a sample of 203 high-tech Chinese enterprises across multiple industries. Structural equation modeling and the hierarchical regression method were used to test the hypothesis.

The results show that the FFE of patent management, namely, patent acquisition and patent protection, positively affect innovation performance. Specifically, patent commercialization mediates the relationship between FFE patent management and innovation performance. Moreover, technological lock-in moderates the relationship between patent management and innovation performance.

This study puts forward suggestions relating to institution innovation and mechanism innovation for effective patent management in firms, and provides some guidelines for firms to efficiently utilize patents to improve innovation performance.

This paper provides certain empirical evidence for the study of organizational structure, strategic management, and knowledge governance. As the main participators in technology innovation, high-tech enterprises should utilize both inside and outside resources to acquire patents.

The purpose of this paper is to analyze the impact of patenting on the performance of academic spin-off firms (ASOs) in the post-creation stage. Specifically, our study analyses how the combination of knowledge transfer mechanisms by ASOs and patents can foster ASOs’ early growth performance.

The authors explored the relations between patenting processes and spin-off performance through econometric methods applied to a broad sample of Italian ASOs. The research adopts a deductive approach, and the hypotheses are tested using panel data models by considering the sales growth rate as the dependent variable regressed over measures of patenting activity and quality and assuming that firm-specific unobservable drivers of growth are captured by random effects.

The empirical analysis shows that the incorporation of knowledge transferred by the parent university and academic founders through patents affects the performance of ASOs. Specifically, the authors find that the number of patents is a positive driver of ASOs’ performance, whilst patent age does not have a significant impact on growth. Moreover, spin-offs with a larger endowment of patents obtained before foundation, surprisingly, grow less on average.

The findings have implications for ASO founders by suggesting that patenting processes reap benefits. However, in the trade-off of external knowledge access vs internal knowledge protection, it may be better to begin patenting after the foundation of ASOs.

The authors enrich the on-going debate about the connections between knowledge transfer and organizational performance. This paper combines the concepts of patents and ASOs by providing evidence on the role of patenting processes as a transfer mechanism of explicit knowledge in ASOs. Furthermore, the authors contribute to the literature on costs and benefits of patents by hinting at unexpected findings.

The measure of companies' Innovation Performance is fundamental for enhancing the value and decision-making processes of firms. The purpose of this paper is to present a new measure of Innovation Performance, called Innovation Patent Index (IPI), which makes it possible to quantitatively summarize different aspects of firms' innovation.

In order to define the IPI, a secondary source, i.e. patent data, has been used. The five dimensions of IPI, i.e. efficiency, time, diversification, quality and internationalization have been defined both analyzing the literature and applying three different machine learning algorithms (regularized least squares, deep neural networks and decision trees), considering patent forward citations as a proxy of the innovation performance.

Results show that the IPI index is a very useful tool, simple to use and very promptly. In fact, it is possible to get important results without making time consuming analysis with primary sources. It is a tool that can be used by managers, businessmen, policymakers, organizations, patent experts and financiers to evaluate and plan future activities, to enhance the innovation capability, to find financing and to support and improve innovation.

Patent data are not widely used in all the sectors. Moreover, the pure number of forward citations is not the only forward looking indicator suggested by the literature.

The demand for a useable Innovation Performance tool, as well as the lack of tools able to grasp different aspects of the innovation, highlight the need to develop new instruments. In fact, although previous studies provide several measures of Innovation Performance, these are often difficult for managers to use, do not appreciate different aspects of the innovation and are not forward looking.

Given the changing role of patents within enterprises, this research aims to investigate the link between patent management and technological innovation performance in Chinese high‐tech enterprises. Also, from theoretical underpinnings this study highlights the managerial implications of effective patent management which will lead to enhanced technological innovation performance.

Hypotheses related to patent management and technological innovation performance in Chinese high‐tech enterprises have been developed based on a review of the literature and related field interviews. Data has been collected from 118 high‐tech enterprises using questionnaires and analyzed using regression and SEM analysis.

Patent acquisition has a positive impact on both protection and commercialization of patents. Considered together, the combination of patent acquisition and commercialization has a positive impact on technological innovation performance in high‐tech enterprises. While patent protection positively affects patent commercialization, it has no direct effect on economic or societal performance. Therefore, the key factors to enhance the link between patent management and technological innovation performance of Chinese high‐tech enterprises are effective patent acquisition and subsequent commercialization.

From a resource‐based view, this paper delineates the concept of patent management and validates the link between patent management and technological innovation performance. To the authors' knowledge, it is a relatively new perspective to explore patent management based on a micro‐level.

This study aims to improve the understanding of the factors that influence the performance of universities' technology transfer offices (TTOs), units charged with the responsibility for aiding the commercialization of research innovations.

To empirically test the link between factors affecting TTO performance and whether these effects are contingent on a country-specific environment, survey data were collected from 187 TTO stakeholders (TTO heads, TTO employees and university researchers) in 18 countries of Europe and Japan, and structural equation modeling (SEM) was used.

The results show that the internal embeddedness of a TTO within a university is the most important factor in determining a TTO's performance. A TTO's performance is positively affected by its marketing capabilities and social embeddedness. Strict patent portfolio management has no significant impact on TTO performance in Japan and has a negative effect on European TTOs' performance.

This study highlights the role of organizational and interorganizational factors in TTO performance; moreover, this is one of the few multi-continent (Europe and Asia) studies in the domain of university–industry collaborations, expanding the current understanding of the contingent roles of the region of operation, which has remained unexplored, as extant studies were typically conducted in only one country.