Abstract
A patent pool strategy was proposed for use in the electric vehicle cell industry to manage patent licensing disputes and litigation. How to promote EV cell innovation diffusion under a patent pool scenario is unclear. We introduced an innovation diffusion channel model comprising different players with patent licensing relationships and market competition relationships following evolutionary game analysis and simulation. We found the interlinked factors that influenced evolutionary stable strategies with a sensitivity test on all factors to identify the important and unimportant factors. To achieve the maximum return for the players, an optimization algorithm was introduced to find the maximum weighted object function. The decision and policy makers could focus on important factors such as improving the technology’s competitive advantages, delivering more profits to its licensees with reasonable licensing fees, and finding the best patent pool strategy with the support of the optimization algorithm to balance the competition relationships and patent licensing relationships between players.
Highlights
The electric vehicle (EV) cell industry is facing fierce patent disputes and litigation, which are key challenges for this emerging market’s players [1]
N + sx n where x is the ratio of potential adopters that adopted the patent pool technology, a is the technology advantage ratio of the patent pool, l is the patent pool licensing fee that non-member licensees pay per unit of EV cell, r is the EV cell producers’ unit profit if patent the pool technology is adopted, u is the EV cell producers’ unit profit if the patent pool technology is not adopted, s is the total number of non-members, and n is the number of patent pool members
The influence of the number of members in the patent pool (n) on the evolution of the system showed that the more firms there were in the patent pool, the smaller the diffusion depth; that is, the number of members in the patent pool had a negative impact on the evolutionary stability strategy, which was the depth of the technological innovation diffusion
Summary
The electric vehicle (EV) cell industry is facing fierce patent disputes and litigation, which are key challenges for this emerging market’s players [1]. Based on the existing literature regarding electric vehicle cell innovation diffusion without a patent pool [3], we extended our analysis to consider patent pool strategy by following the evolutionary game and optimization algorithm approaches, which sets our study apart from others in the literature that consider different industries, different factors, different supply chain structures, or different approaches [4,5,6,7,8,9,10,11,12,13,14,15,16,17,18]. This study contributes to the existing literature on innovation diffusion in the electric vehicle cell industry since it considered a patent pool strategy, established an innovation diffusion channel model, conducted an evolutionary game analysis and simulation, identified the key factors and the interplay between these factors, and developed an optimization algorithm for use by decision- and policymakers.
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