Abstract
The lack of high-value patents constraints the reverse innovation of developing countries’ local enterprises. To explore how high-value patents evolve within reverse innovation in these enterprises, this paper proposes a theoretical framework to analyze the relationships among technology, law, and market values for high-value patents and builds a three-dimensional Lotka–Volterra model of high-value patents under this framework. Using this model, this study explores the evolution path and the optimal conditions for the formation high-value patents. We take a local Chinese company, Huawei, as a case to test the theoretical analysis and make some managerial suggestions accordingly. Our research provides a theoretical basis for cultivating high-value patents in reverse innovation in local enterprises in China and other developing countries.
Highlights
Since the 21st century, a phenomenon has existed in which innovative products or technologies originating in developing countries or emerging markets spread back to developed countries. is situation is quite different than the traditional innovation model, in which new products or technologies are always created in developed countries and spread to developing countries. e direction of this innovation’s diffusion is “reverse,” and Immelt [1] et al call it “reverse innovation.”
We propose a three-dimensional Lotka–Volterra model to analyze high-value patents’ evolution path and the optimal conditions for their formation in reverse innovation in local enterprises, and we use a Chinese company, Huawei, as a case in the practical analysis
Since the Lotka–Volterra model explains the evolution of complex ecosystems well [34, 35], we used it in our research to analyze the evolution process of high-value patents in reverse innovation in local enterprises. e Lotka–Volterra model is usually composed of a logistic growth function, which is used to express two species with a mutually influential relationship, and is expressed as follows [34]: 3.3.2
Summary
Since the 21st century, a phenomenon has existed in which innovative products or technologies originating in developing countries or emerging markets spread back to developed countries. is situation is quite different than the traditional innovation model, in which new products or technologies are always created in developed countries and spread to developing countries. e direction of this innovation’s diffusion is “reverse,” and Immelt [1] et al call it “reverse innovation.”. If the technology value of a patent is kept low, it is difficult for local enterprises to obtain a sustainable competitive advantage in the long term, especially when their new products flow reversely to developed countries and face global competition in the overseas market. Erefore, this paper constructs a theoretical analysis framework of the value relationship of high-value patents in the following three dimensions, i.e., technology, law, and market. In this framework, we propose a three-dimensional Lotka–Volterra model to analyze high-value patents’ evolution path and the optimal conditions for their formation in reverse innovation in local enterprises, and we use a Chinese company, Huawei, as a case in the practical analysis. (3) It analyzes the evolution of Huawei’s high-value patent in reverse innovation and suggests some relative management policies. is study will help the developing countries’ local enterprises cultivate their high-value patents in reverse innovation
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