Evolution of High-Value Patents in Reverse Innovation: Focus on Chinese Local Enterprises

Abstract

The lack of high-value patents constraints the reverse innovation of developing countries' local enterprises. To explore how high-value patents evolve within reverse innovation in these enterprises, this paper proposes a theoretical framework to analyze the relationships among technology, law, and market values for high-value patents and builds a three-dimensional Lotka-Volterra model of high-value patents under this framework. Using this model, this study explores the evolution path and the optimal conditions for the formation high-value patents. We take a local Chinese company, Huawei, as a case to test the theoretical analysis and make some managerial suggestions accordingly. Our research provides a theoretical basis for cultivating high-value patents in reverse innovation in local enterprises in China and other developing countries.