Patent management and the globalization of firms: the case of Siemens (1890–1945)

Abstract

PurposeThe purpose of this paper is to discuss how multinational enterprises have historically managed global patenting and to what extent the localization of patent management has supported the expansion of these enterprises. This study focuses on the electric appliance industry (one of the first industries to see the emergence of global companies) and consider the case of Siemens, a German multinational company, comparing it to General Electric (GE), an American company.Design/methodology/approachThe work adopts a global business history approach. Taking GE’s global patent-management model, described by Nishimura (2004, 2009, 2016), as the benchmark, this study analyzed Siemens’ worldwide control of its intellectual property rights between 1890 and Second World War, using German, Japanese and American primary sources.FindingsPatent management is a common means for firms to globalize and transfer technology internationally, but it can take various forms. While GE transferred patent management to its foreign subsidiaries (a process known as localization), Siemens kept worldwide patent management at its headquarters – except in Japan, where in time it transferred this activity to a joint venture. The transfer of production called for localization of patent management while focusing on exporting to other markets made it possible to keep patent management at headquarters.Originality/valuePatents are usually a source for quantitative surveys. This paper uses them to discuss how multinational companies manage property rights globally. It is the first paper to address this issue by comparing two major actors in a similar industry.