The Impact of Intra-Organizational Knowledge configuration on the Termination of Patented Inventions

Abstract

This paper examines how intra-organizational knowledge configuration, and specifically cohesion among knowledge components, influences an organization’s decision to terminate patented inventions. We differentiate cohesion among knowledge components at local and global levels and argue that local and global knowledge cohesion have differing effects on invention termination. We matched two datasets to test our hypotheses. Using a longitudinal dataset consisting of the patenting activities of 417 U.S. pharmaceutical firms, we constructed organizational knowledge networks and identified local and global cohesion features. We then used patent maintenance data to specify invention termination by tracking non-payment of patent renewal fees. We found that local knowledge cohesion facilitates the retention of patented inventions, while global knowledge cohesion is positively associated with the termination of patented inventions. Theoretical and practical implications are discussed.