 Advances in Technology Innovation , vol. 1, no. 1, 2016, pp. 16 - 20 16 Copyright © TAETI Innovation Management of Patent Commercialization Yi-Ping Lee * Department of Business Administration National Chung Hsing University , Taichung, Taiwan. Received 01 April 2016; received in revised form 10 May 2016; accept ed 13 May 2016 Abstract Patent commerc ialization is an important issue to most country, for only 0.3 percent of patent have comme rc ialized in the world. Researchers try hard to enhance the rate of patent comme rcia lization. This paper focus on innovation of organization and management to enhance the rate of patent comme rcia lization. Which is based on team wo rk and plan to promote step by step, for most patent owner develop patent but do not equally put effort on patent commerc ialization, and that is waste precious time and resource. This research directly analysis government published patent secondary data and the other part is questionnaires survey to patentees , with which to find best way of patent commercialization. Keywor ds : patent commercializat ion, patent management, strategy of commercialization 1. Introduction Corresponding to the number of patents increased rapidly in the whole world during recent years , this phenomenon imply that the world people are pay attention to the influence of intellectual property rights . Most country build a good national patent environment to provide creative and co mpetitive resource, the less barriers of patent commerc ialization re moved, and the higher rate of patent comme rcia lization will be. Patent system protect inventor’s interest from patent infringe ment, which means one who produce or sale patent product without authorization, he will be punished by pay loss of patentee’s damage or more seriously treble fined for h is behavior of patent right infringement. Another way of patent use is the patent owner can e xerc ise his patent right in attack and defense in a co mpete war, he can use the patent right to beat competitors in the ma rket, the value of patents value may up to millions dollars, or much more than that, upper concepts highlight the reason and importance of patent commercialization. Patent number keep on increase but the rate of patent commerc ia lizat ion still low, average rate of patent commerc ialization in the whole world are only near 0.3 percent. Innovation is a global trend for most inventor, patentees pass the patent exa mination by long time research and continuously improve ment to inventions , but after a lot challenge and then gain the patent right. The process of patent application need about 3 more years, if the inventor is lucky enough, he may pass patent exa mination in first time, or he have to file roundtrip several times . Patentee have to pay an annual fee annually to ma intain his patent right is another barrier of patent commercialization. Why patentee shelved commerc ialization action after owned the patent? most inventors are top cleaver in their do ma in of industry, they can solve very comple x technic proble m, because patent should satisfy factors of useful, novelty and non-obvious, all these three factors have to testified by the patent exa miner through precedent exa mination, there can’t have any precedent be find in any other patent database of the whole world, or e lse the patent exa miner will turn down the patent application. Every cases of patent application are need a lot of resources from government and individuals , all front end process before patentee own his patent, regardless technic development or patent application are need to pay money, furthermore, patent ma intenance fees pay annually increasing is money consuming. Since patent product’s life cycle need continuously pay money fro m the beginning of patent invention to the patent right perished. An obscure question need to find the answer and why? The question is the patent pay compared with the outcome of va lue is e xtre me ly inequivalent, wh ich imply that the patentee gain * Corresponding aut hor, Email: yiping727@yahoo.com.tw Advances in Technology Innovation , vol. 1, no. 1, 2016, pp. 16 - 20 17 Copyright © TAETI nothing in the end of patent life cyc le, are they really want to pay price and without gain any benefit? we can trace back to the meaning of patent right to find the answer, here the answer should be very clear, the patent right originally mean the patentee have the right to e xc lusive others to infringe his patent right by the government authority, e xcept that, the patentee have the right to sale the patent right, produce the product, if the patentee can do one of upper things, he will not be gain nothing fro m patent, this identify that most patentees are want gain benefit fro m patents but inability to do something have his patent commercialized. Most patentee was numb about keep on pay fees annually after ga in patent right, outcome of patents is zero year after year, in particu lar, they still have no active action of patent comme rcia lization, which is not match the rule of investment, what a re they work for is the question, how to solve the proble m is the goal of this paper. This paper focus on the secondary data of government intellectual property to analysis and find partia l factors of patentee’s inability of patent commercialization. 2. Literature Review and Hypotheses China is in response to the global trends, they establish a an modern patent system in recently years, which is pave with international standards , with which to imp ly patent protection (Lulin Gao, 2008), it is difficu lt to have patents comme rcia lized is a long term phenomenon in the world, may the reason of inadequate equipment or lac k of incentive for comme rcia lization (Avimanyu Datta, 2012), comme rcia lization of university inventions (Yonghong Wu, 2013) Basically patent inventors almost are e xcellent and cleaver, but in the link of patent comme rcia lization are transfixed and s ilently endure no recovery and obtained repeatedly in long-term of non-use patent investment, this situation is not only a country’s problem, there are almost the same in the world, wh ich waste a large a mount of national resources of e xa mination and indiv idual’s monetary or time resources, this is really an pract ical and academic issue, for the benefit of all country and patentee, unravel the patent commerc ialization problem and do good to society and patentee in the same time , this artic le as the results prevail for understanding patent commerc ialization of patentees. First, patent commerc ialization factors clarify, second, succeeded experience highlighting. 3. Research Frame and Hypothesis This paper have the operational definition on research facets as follo w, wh ich include patent number, patent of comme rcia lization, organization, p ro motion action and investment of fund and time a re co mputable fro m data or questionnaire. All patent data are collect fro m Intellectual Property Office, M inistry of Economic Affairs (MOEA), fo r some of the private informat ion should collect fro m individuals, such as investment of fund or time , and both of upper two ma in factors are set to computable number in different facets. Patent comme rcia lization was composed of several factors, which inc lude human resource of promotion, action of pro motion, investment of fund and time etc. All factors are affect the patent comme rcia lization rate, thus, hypothesis as follow, fo r patent comme rcia lizat ion was calculated on patent and comme rcia lized patent, thus, the quantity of patent in equation’s denominator will affect the result of patent comme rcia lization rate. For patent comme rcia lization is so difficult, thus it should be promoted by organized tea m, basically, the more e mp loyee me mbe r work together, the outcome of that team will be better. H1: The more quantity of patent number in patent data, the lowe r o f patent commercialization rate. H2a: The more quantity of e mp loyee number in organization of patent commerc ialization, the higher of patent commerc ia lizat ion rate. H2b: The more quantity of action in patent comme rcia lization, the higher of patent commercialization rate. H3a: The more quantity of fund in investment of patent comme rcia lization, the higher of patent commercialization rate. H3b: The more quantity of time in investment of patent comme rcia lization, the higher of patent commercialization rate. Advances in Technology Innovation , vol. 1, no. 1, 2016, pp. 16 - 20 18 Copyright © TAETI 4. Method Due to research the individual patents comme rcia lization, this research focus on the process and case of patent comme rcia lization, because the rate of 0.3 percent patent comme rcia lization is now e xist the same in most country, thus, every successful e xperience will be very precious, we visit the patentee to find detail and factors of these patent commercialization(Nicole Ziegler, 2013). This research focus on patent owner, up to now, all cases are from Ta iwan patentee, and the patentee have the level of own about 100 patents, and the rate of patent comme rcia lizat ion over 5 percent, compare with the common patent comme rcia lization rate with 0.3 rate, 5 percent could be a very successful and precious e xperience, fo r these case much better than common cases about ten times of comme rcia lization rate. The method of analysis was adopt Statistical Package for the Socia l Sciences (SPSS) in analysis, secondary data and questionnaire was use in research re liability and validity, we e xclude the invalid samp le. Va riab le define and evaluation in this research was use patent number of patentee owned, individual patent commerc ia lizat ion rate was set and calculated fro m government published patent data number (PDN) divided by number of patentee comme rcia lized patent (PCN), the sa me as total number of patent comme rc ialization rate was averaged upper two factors to gain comple x commercialization rate. PCR=PN/PCN (1) The patent commerc ialization rate was affected by patent promotion (PP), and which was composed by two factors, first, promotion organization, second, promotion action, and promotion organizat ion and management, promotion organizat ion was define as the have tax pay for salary and number of patent promotion e mp loyee (PPE), action of promotion(AP) was define as have record of application of govern ment subsidiary (A GS), records of patent t transaction (PT) in platfor m or produce of patent product(PPP), pro motion time consuming(PT C), invest in capital(IC) etc. Patent strategy was adapt from questionnaire to the patentee, such as how much fund put to comme rcia lization (FPC) his patent, and how many patent is plan to commerc ialization (PPC), PPE=SA*NE (2) AP=AGS+PT+PPP+PT C (3) PCS=IC+IT (4) 4.1. Secondary Data Analysis All cases are selected by the level of the patentee have higher rate of patent comme rcia lization, if a case can achieve this level, this kind of case have ten times of PCR than usually patentee have, and far e xceed most country’s PCR. Thus, for two reason of this research design, first, near 100 patents owner and 5 percent of PCR a re strictly level for most patent owner, most patent owner in the world a re in the situation of PCR lo wer than 0.3 percent, thus, the level of 5 percent PCR should be reliable fo r the test and study, first of all, in the first section, we choose the R&D tea m me mbe r less than 10 e mp loyee, for most patentee are individual inventor, we will limited our range for the study be exactly right to most patentee, thus, in the first section the participant will not be a firm level R&D operation. 4.2. Primary Questionnaire data analysis Through phone call and e-ma il to confirm the visit date and time , then have face to face questionnaire discussion with the patentee, furthermore, we visit the patent product factory and discuss with the manager and sales, questionnaire was design as Likert 5.0 scale, this process can be part of further internal empirical. 4.3. Cases Study Case 1 have a research and development team, which is organized by about 5 people and led by a pro fessor/Dr. who is a pro fessor of National University, and serve in Depart ment of brain neurology, through over 26 years of work and research from day to night, the professor/patentee own and partially involved 93 patents, most patents are medical equip ment, he chaired his research team, focus on invention and patent design. Case 2 have a research and development team, wh ich is organized usually by about 2 to 5 people and led by a professor who is a professor of National University too, and serve in Depart ment of material science, through about 11 year research, the patentee own and part ially involved 172 patents. Advances in Technology Innovation , vol. 1, no. 1, 2016, pp. 16 - 20 19 Copyright © TAETI Case 3 do not have a research and development team, who usually innovation by himself, through over 12 years of research, the patentee own and partially involved 72 patents, all patent are through long term and continuous work and study, keep on try and error to win the patent, after this stage, patentee develop an partner owned product manufactory. Table 1 Patent Case analysis Patentee A B C Patent Domain Medical Equipment Material Science Multiple Domain Patent Quantity 93 172 72 New Invented 85 172 24 New Design 8 0 25 New Type 0 0 1 Patentee Research duration 1999-2015 2004-2015 2004-2016 Patentee Research year 26 11 12 Commercial Quantity 5 7 32 Commercial rate 18.50% 24% 44% Highest invention Quantity in a year 15 45 22 Patent applied by University 76 150 0 Patent applied by Group 7 15 23 Patent applied by Individual 10 7 49 Average Year to Own patent 3.2year 4.5year 7.2month 5. Results and Discussion Faith and determination be possible o obstacle to patentee in attempt to promote patent, plan and execute are main affect factors, patentee’s faith of patent commercialization, faith and commitment of a person's attempt to complete plan (Ajzen1985). Possible future research design for this is sue, the research design may focus on case study and questionnaire, include government officer, business manager, stock investors and experts, for all these people are important member patent commercialization. After the research of data analysis, a successful patent comme rcia lizat ion are have a team to support the action of patent comme rcia lization, which include research and development, promotion me mbe r of comme rcia lization, financia l support and ma rket ing. If with a tea m operation continuously, especially on the promotion work, then, patent would be possible be commerc ialized, else, most patentee focus on research and development, there almost have no resource and promotion action have put in, thus, lack of pro motion action in commerc ialization is the ma in reason exist low rate of patent commercialization . 6. Conclusions In this paper, three new way of the patent comme rcia lization have been generated in this research. 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