1. The document analyzes the network features of patent transaction markets using the TFT-LCD industry as an example.
2. It identifies four major types of players in patent markets based on network centrality and constraint measures: technological capacity keepers, technological development allocators, intellectual assets disposers, and intellectual assets coordinators.
3. The patent transaction network evolves over three phases: an initial random market, a super small-world dominant design market, and a stable small-world mature market with emerging niche players.
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The market behaviors of the patent transaction
1. Paper ID: 19R0074
Hung-Chun Huang Ph.D.
National Chi Nan University,
TAIWAN
Hung-Chun Huang, Hsin-Yu Shih, Tsung-Han Ke,
Department of International Business Studies, National Chi Nan University, Taiwan
2. Shrestha (2010)
Practicing
Entities(PEs)
Non-practicing
entities (NPEs)
Hytönen et al. (2012)
Patenting and
Manufacturing
Companies (PMC)
Manufacturing
Companies (MC)
Patenting Companies
(PC)
Pénin (2012)
Technological
firms
Patent
trolls
Patent Brokers
Patent Value
Assessment
Patent
Monetization
Firms
University
Research
Lab.
Research
Ins.
Banks
R&D
company
Joint
Capital
Transaction
Market
3. Based on the network features of patent
transaction market…
Who are the major players in patent
transaction markets?
To classify the major players in patent
transaction markets.
4. Network
(industry)
Constraint
Market
(transaction)
Status
Actors
Status signal theory
Firms tend to transact with those
firms possessing a higher number
of transaction partners.
Podolny, J. M. 1993, 2010
Structure Holes theory
The market players with relatively
low network constraints tend to
extend more wide market range as
well as to contact a variety of
transaction groups.
Burt, R. S. 2004, 2015
Typology?
5. TFT-LCD technology & FPD industry
Pre-dominant
design
Dominant
design
Post-dominant
design
DSM-
LCD
TN VS. STN
TFT-LCD
around 1987 to 1996
around 1997 to 2005
around 1976 to 1986
Pre-dominant
design Dominant
design
Post-dominant
design
Patent Granted 1976 - 2012
Huang, Shih, Ke, & Liu (2012)
6. Core-periphery
analysis
Small world
analysis
the extent of cluster
configuration
Whole Network
Centrality
Betweenness measures
the extent to which a
particular node lies
between the various other
nodes in a set of nodes.
Structure Holes
Constraint measures
the extent to which a
particular node is
constrained by the others.
Core Actor’s Ego
Network
Whole market analysis Core actors analysis
Social network analysis
7. Core-periphery analysis
Periods I. 1978-1989 II. 1990-2001 III. 2002-2012
Network Scale
N
60 273 411
Core
Numbers (%)
4 (7%) 6(2%) 22(5%)
Periphery
Numbers(%)
56(93%) 267(98%) 389(95%)
Interactive
Density 0.00
0.004
0.003
0.005
0.006
0.004
0.250
0.833 0.110
0.006
0.003
0.002
12. Centrality
Betweenness measures the
extent to which a particular node
lies between the various other
nodes in a set of nodes.
Structure Holes
Constraint measures the
extent to which a particular node
is constrained by the others.
Core actors analysis
Social network analysis
Core/periphery group
15. Core actors analysis
S
amsung
NEC
Hitachi
Chimei
U.S. Philips
Matsushita
Toppoly
Hannstar
Fujitsu
AUO
ITRI
Seiko
Royal Philips
IPG
Sumitomo
NEDO
Chunghwa
TPO (TW, PE)
IR
Kyocera
Sanyo
IBM
Constraint
Betweenness
I.
II.
IV.
High
Low
Low
High
III.
16. Typology
Intellectual assets
coordinator
high market status / low industrial
constraint
Technological capacity
keeper
low market status / high industrial
constraint
Technological
development allocator
high market status / high industrial
constraint
Intellectual assets
disposer
low market status / low industrial
constraint
17. Typology
Type I: Technological capacity keeper
– low market status / high industrial constraint
– They focus on managing technological capacity formation or extension.
Type II: Technological development allocator
– high market status / high industrial constraint
– They are critical hub nodes in the industry and possess the crucial patents for developing the
technology.
Type III: Intellectual assets disposer
– low market status / low industrial constraint
– They trade patents in order to dispose of their intellectual assets.
Type IV: Intellectual assets coordinator
– high market status / low industrial constraint
– They occupy the most advantageous position in the transaction market. They possess not
only certain crucial patents for developing the technology but also the patents that could have
cross-technology applications.
18.
19. 1. Initial market
– Random walk; No small world effect
2. Dominant design market
– Super small world effect
3. Mature market
– Small world effect; Niche markets emerging
Three phases of market development
20. 1. A highly structuralized market; with a few core firms
holding the majority of patent transactions.
2. The patent transaction market in the mature period
exhibits as a stable small-world structure.
In the mature market
Mature market
SWN
QSmall-World
=38.999
0.006
0.004
0.110
0.002
21. 1. Technological capacity keepers
2. Technological development allocators
3. Intellectual assets disposers
4. Intellectual assets coordinators
The network features of patent
transaction markets
22. Hung-Chun Huang Ph.D.
National Chi Nan University,
TAIWAN
A example of TFT-LCD industry
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