Abstract
Electric vehicle cell industry is an emerging area with fierce competition on technical innovation, in which the patent holder can choose different innovation diffusion options to maximize the return; however, the strategy is unclear in certain scenarios. We tried to explain the question of how to maximize the patent holder’s return by appropriate patent license strategy to promote EV cell innovation diffusion, when competition and patent licensing relationship exist in the supply chain. A multistage and multichannel diffusion model of EV cell comprising the patent holder, EV cell producer and EV producers is developed; the evolutionary game is analyzed considering the competition among same stage players and patent licensing relationship among different stage players; and an optimization algorithm is introduced to find the maximum weighted object function of the patent holder. We established the multistage and multichannel diffusion model and found a nonlinear complex relationship between patent holder object function and the key factors including patent royalty pricing and innovation advantage coefficient; in addition, an optimization algorithm is developed based on adopters’ decision-making related with competition and patent licensing.
Highlights
EV cell producer and EV producers are key players that comprise the supply chain
Among the EV cell producers, there is a competition relationship; as the EV cell producer, if the patent holder owns an EV cell producer and EV producer, what is the way to maximize the return of the patent holder? Is there any algorithm to find the optimal return of the patent holder considering the adoption decision? As the core component of electric vehicle which is critical for Eco-innovation [1,2,3], the adoption decision of EV cell producers and EV producers on the patented EV cell impacted by patent royalty, return and cost, competition is related with the number of producers that adopted patented EV
The existing literature considers patent licensing when outsourcing production to competitors in different supply chain scenarios and perspectives [3,4,5,6,7,8,9,10,11]; the supply chain structure and scenarios are different than the EV industry, and there is a lack of an optimization algorithm, which is as necessary as it is difficult to find optimal return considering the nonlinear relationship with several factors, which is multidimensional decision space
Summary
EV (electric vehicle) cell producer and EV producers are key players that comprise the supply chain. As the core component of electric vehicle which is critical for Eco-innovation [1,2,3], the adoption decision of EV cell producers and EV producers on the patented EV cell impacted by patent royalty, return and cost, competition is related with the number of producers that adopted patented EV cell technology. The existing literature considers patent licensing when outsourcing production to competitors in different supply chain scenarios and perspectives [3,4,5,6,7,8,9,10,11]; the supply chain structure and scenarios are different than the EV industry, and there is a lack of an optimization algorithm, which is as necessary as it is difficult to find optimal return considering the nonlinear relationship with several factors, which is multidimensional decision space. This paper aims to explore the conceptional and mathematical model of the interplay between patent and innovation diffusion of EV cell industry.
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