Innovation management in crisis: patent analytics as a response to the COVID‐19 pandemic

Frederik J. Riar,Carsten C. Guderian,Sarbani Chattopadhyay,Peter M. Bican

doi:10.1111/radm.12447

Frederik J. Riar, Carsten C. Guderian + Show 2 more

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https://doi.org/10.1111/radm.12447

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Abstract

Crises like the COVID‐19 pandemic affect firms’ innovation management and decision making. On the downside, crises lead to detriments like budget constraints, to which firms often respond by reducing their innovation activities. On the upside, crises are opportunities, where some firms exploiting changing market requirements and necessities excel. No matter in which direction, decision makers must react quickly but often rely on ad‐hoc decisions or even gut feeling when drafting their crisis response strategies. Through a series of distinct cases, we demonstrate that innovation management may fill this void through patent analytics. Drawing on biochemical expertise, we particularly describe the functions and effects of COVID‐19. To counter downside detriments, firms may circumvent budget constraints by discerning patents that can be (1) monetized, for example via sales or licensing deals, or (2) abandoned to achieve cost‐savings, allowing firms to maintain their innovation activities. To realize upside opportunities, firms and governments may use patent analytics to detect key biotechnology firms that are likely to successfully develop treatments and vaccinations against pandemics like COVID‐19. Promulgated U.S. interest in relocating foreign firms to the United States is not without technological and commercial reasoning. Herein, the insights of this study contribute to a better understanding of the use of patent information, such as smart patent indicators, harmonized patent data, novel annuity fee measures, and hand‐collected datasets of COVID‐19 and related antibodies’ patents to the management of innovation in times of crisis.

Highlights

The recent outbreak of the novel virus SARSCoV-2 has developed into a worldwide pandemic from late 2019 onwards (e.g., Rothan and Byrareddy, 2020)
It is surprising that only little scholarly attention has been paid to investigating the possibilities that publicly available information offers for organizational decision making, in the global COVID-19 pandemic, but in crises in general. We address this gap by studying how innovation management decisions in times of crisis like the COVID-19 pandemic can be improved through publicly available data
We show how patent analytics may shape innovation management during crises (e.g., Campbell, 1983; Archibugi et al, 2013a; Guderian, 2019)

Summary

Introduction

The recent outbreak of the novel virus SARSCoV-2 has developed into a worldwide pandemic from late 2019 onwards (e.g., Rothan and Byrareddy, 2020). Prior research investigating innovation management in crises found crises to intensify ‘uncertainty, complexity, ambiguity and. Corporate decision makers have to react quickly, consider future effects, and simultaneously generate options to overcome the crisis here and (Teece et al, 2016). These reactions are typically ad hoc and based on gut feelings instead of sufficient information (e.g., Müller, 1985; Cooper and Edgett, 2010; Bessant et al, 2015). Firms often cut their innovation investments despite negative long-term consequences, as visible in reduced patent filings, forfeiting the firms’ future (Archibugi et al, 2013b; Hingley and Park, 2017)

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