Abstract:This paper studies the licensing of standard-related patents owned by different companies. We examine a two-level licensing model where (i) the aggregated value of technology in the end product is shared among the relevant integrated technologies, and (ii) the value of each technology is shared among patent owners in proportion to the strength of their respective patent portfolios in these technologies. Moreover, we develop a system-dynamics simulation model for technology and product markets, and present numerical results which suggest that proportional sharing of licensing payments is viable in view of market growth, technology development and company profitability.

The paper describes findings from a multiple case study about the innovation management challenges of a system integrator (SI) whose operation is characterized by a high demand of innovation and whose focus of integration capabilities is, accordingly, changing from component assembly to knowledge integration. The study involved six diverse case firms, and it applied the methodology of qualitative research. Innovation networks orchestrated by the SI were categorized, according to the way in which knowledge and intellectual property (IP) were explored and exploited in the network, to sourcing (transaction) and co-creation types of networks. The research question of the study was, what aspects of sourcing networks and of co-creation networks support or hinder networked innovation from the viewpoint of a SI and innovation management? After iteratively addressing the lessons learned from literature and empirical case findings, sets of supporting and hindering aspects were presented as implications of the study.

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