Benefiting from Technological Innovation Through Patent Strategy: A Case Study of a Textile Company in China
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This paper focuses on the practice of technological innovation in a state owned enterprises (SOE) which operates in traditional industry and is located in an underdeveloped region of a developing country. It is about best practice of benefiting from technological innovation through patent strategy in this company. We try to determine the mechanism of how this company benefits from technological innovation through patent strategy. We developed a framework with four key dimensions to understand and analyze all the issues of patenting practice observed in this case. In this paper, we begin with a theoretical overview to discuss the functions and the relevant effectiveness of patent protection, to analyze the strategic uses of patent as well as the patent strategy in the firm context. Second, we explain our research methodology. Third, we introduce the case of Grace Group we studied and the general background of China’s IPR protection system. Fourth, we picture Grace’s patent strategy and described the formulation and implementation of its patent strategy. When analyzing the strategic choice of Grace’s patenting activities, we introduce a four-dimensional framework. Fifth, we make a conclusion and present implications according to our study. In the final section we foresee the future research.