How business methods accompany technological innovations – a case study using semantic patent analysis and a novel informetric measure

Abstract

Usually, the development of a technology interacts with the development of business methods, which are needed to enter the application fields. For some years now, it is possible to analyse their interaction as, next to technological innovations, business method innovations can be patented. To investigate this interplay, we select the case of radio frequency identification devices (RFID) – a technology that first emerged many years ago, but is still undergoing further development. We analyse approximately 37,000 patents related to RFID technology from the period between 1990 and 2014, differentiating between technological and business method patents, by means of bibliographic and semantic analyses, using one well established and one novel informetric measure. Contrary to our expectations, the results point to technological innovations that are not ensued but constantly accompanied by business methods. Furthermore, we identify two types of players, that is technology and application specialists. There is a clear distinction between these two types, though all companies of both types apply for technological as well as business method patents. As our semantic analysis reveals, RFID were successively introduced in their application fields between 1998 and 2008, starting with industrial applications, and then moving on to service applications. In future, technology managers should develop strategies based on the interaction between technological and business method patents, keeping in mind the early start and sequential development of different application fields.