Innovation performance on digital versatile disc (DVD) 3C patent pool formation

Abstract

Theoretical suggestions are inconsistent with empirical findings about whether patent pools encourage innovation domain. This paper empirically examines the firm-level innovation on patent pool formation. In order to empirically investigate the variance of the innovation performance of patent pool, this paper proposes hypothesis for post-formation innovation performance in comparison to pre-formation one in the DVD (Digital Versatile or Digital Video Discs) 3C pool members. This paper employs well-used patent quality indicator- forward citation count as patent quality measurement. To further test the hypothesis, this paper will apply one-sample t-test to conclude whether the mean of the post-formation forward citation count significantly declines comparing with the pre-formation one. Based on the result, this paper aims to verify whether patent pools formation slow down patent innovation performance from firm-level perspective and contribute to the growing literature on the effect of institutional innovations on the follow-on innovation. © 2013 Springer Science+Business Media Dordrecht.