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Patently Wrong? Firm Strategy and the Decision to Disband Technological Assets
Author(s) -
Lowe Robert A.,
Veloso Francisco M.
Publication year - 2015
Publication title -
european management review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.784
H-Index - 32
eISSN - 1740-4762
pISSN - 1740-4754
DOI - 10.1111/emre.12044
Subject(s) - work (physics) , business , intellectual property , economics , industrial organization , computer science , operating system , mechanical engineering , engineering
Considerable research in strategy and innovation has been devoted to examining when and how firms accumulate resources. Yet, little empirical work has focused on when firms disband resources and how this decision to disband resources is affected by firm strategy. This oversight is surprising since theoretical work has highlighted the importance of knowing which assets to grow and which assets to trim. This paper shows that firms' decisions to disband assets are significantly influenced by earlier strategic choices, and the effects are distributed non‐uniformly across firms in the industry. We study these issues by examining how the R&D strategy that a pharmaceutical firm chooses – exploratory versus exploitative – influences the likelihood that firms disband their patents: specifically, decide not to renew the patent and allow the intellectual property right to expire before the end of the patent term.

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