Intellectual Property Research Institute of Australia

IPRIA Working Paper Series

    Intellectual Property Research Institute of Australia Working Paper No. 06/2008

    Combining Patent Law Expertise with R&D for Patenting Performance

    by

    Deepak Somaya, Ian O. Williamson and Xiaomeng Zhang

    Date: November 2008

    Abstract: Drawing on the resource-based view that firm performance is often the outcome of resource bundling, in this paper we examine how the combination of firm resources influences firm innovation performance. We hypothesize that firm innovation, specifically patenting output, depends not only on R&D, but also on complementary patent law expertise required to identify and develop inventions, and convert them into patents. Furthermore, we predict that this effect is moderated by top management team (TMT) functional background and industry conditions, which influence the ability of firms to perceive and act on resource combination opportunities. We empirically model the patenting performance of a sample of Fortune 500 firms from 1990 to 2000 using count panel data techniques, and find robust support for our hypotheses. Our findings shed light on how non-R&D resources affect firm innovation performance, and advance the integration of the resource-based view with complementary organizational perspectives.

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