The Technology Diffusion in Patent Transactions NetworkAn example of TFT-LCD industry

National Chi Nan University, Taiwan

TE-10.1 

PICMET 2016, Hawaii

Hung-Chun Huang Ph.D.

Hsin-Yu Shih Ph.D. Tsung-Han Ke Ph.D.

Research background

TE-10.1  PICMET 2016, Hawaii

However…

What distinctive feature of a patent transaction market?

How a patent transaction network do in multilateral environment?

Exactly what NPEs process a patent transaction network remains uncertain.

Data and Methodology

TE-10.1  PICMET 2016, Hawaii

TFT-LCD technology & FPD industryPICMET2016, Hawaii

Data & ProcessPICMET2016, Hawaii

Social network analysisPICMET2016, Hawaii

Social network analysisPICMET2016, Hawaii

Results and Findings

C/P analysisPeriods I. 1978-

1989II. 1990-

2001III. 2002-

2012Network Scale

N 60 273 411

Core Numbers (%)

4 (7%) 6(2%) 22(5%)Periphery Numbers(%)

56(93%) 267(98%) 389(95%)

Interactive Density

PICMET2016, Hawaii

0.00

0.004

0.003

0.005

0.006

0.004

0.250 0.833 0.110

0.0060.003

0.002

PICMET2016, HawaiiSmall-world analysis

Core group analysis I,IIPICMET2016, Hawaii

Period I Code Name (Country, PE/NPE) In-degreecentrality

Out-degreecentrality

Betweennesscentrality

H83 Hughes (US, PE) 2 1 2

R1 RCA 1 (US, PE) 1 1 2

T197 TRW, Inc. (US, PE) 0 3 0

U40 USGO 2 (US, NPE) 14 0 0

Period II Code Name (Country, PE/NPE) In-degreecentrality

Out-degreecentrality

Betweennesscentrality

I88 International Rectifier (US, PE) 7 14 258H54 Hitachi (JP, PE) 14 15 84H62 Hokkaido Electric (JP, PE) 4 6 10F88 Fujikura (JP, PE) 4 5 0N59 NEDO 3 (JP, NPE) 22 0 0T144 Tokyo Gas (JP, PE) 4 5 0

NEDO: New energy and industrial technology development Organization, Japan

USGO: United States of America as represented by NASA, government offices, and military

Core group analysis IIIPICMET2016, Hawaii

Period II Code Name (Country, PE/NPE) In-degreecentrality

Out-degreecentrality

Betweennesscentrality

N44 NEC 4 (JP, PE) 6 419 1,875H54 Hitachi (JP, PE) 30 91 1,685I44 ITRI 5 (TW, NPE) 489 537 1,557

C62 Chimei (TW, PE) 172 73 1,452S15 Samsung (KR, PE) 136 10 1,367S74 Seiko (JP, PE) 29 56 1,171K55 Royal Philips 6 (NL, PE) 62 175 1,075

S266 Sumitomo (JP, PE) 7 19 997K75 Kyocera co. (JP, PE) 11 8 935

A215 AUO 7 (TW, PE) 293 64 690M39 Matsushita (JP, PE) 3 125 341T168 TPO Displays (TW, PE) 128 65 253T152 Toppoly Optoelectronics (TW, PE) 77 2 209

F90 Fujitsu (JP, PE) 1 438 128I105 IPG 8 (UK, NPE) 7 12 76

I88 International Rectifier (US, PE) 4 6 72C80 Chunghwa Picture (TW, PE) 67 94 68S26 Sanyo (JP, PE) 1 78 61H11 Hannstar Display (TW, PE) 71 64 43I82 IBM 9 (US, PE) 0 392 0

N59 NEDO 3 (JP, NPE) 10 0 0U5 U.S. Philips (US, PE) 0 77 0

PICMET2016, HawaiiCore group analysis

Conclusion and remark

Conclusion 1PICMET2016, Hawaii

1. a high structuralize market; with a minority of core firms holding large patent transactions.

2. core firms and periphery firms are rear transaction.

3. core firms have developed as social closure clusters to trade their technologies.

Distinctive features of a patent transaction market

0.006

0.004

0.110

0.002

Conclusion 2PICMET2016, Hawaii

1. a mature period in a patent transaction market is exhibited as clusterization

2. a small-world structure whereby a limited number of players maintain large technological or patent monetization portfolios.

In terms of technology diffusion…

Mature market

SWN

Q

Small-World=38.999

Conclusion 3PICMET2016, Hawaii

• GO’NPEs: the role of governmental organization NPEs are notable in each period. They play the roles of technology provider, integrator and intermediator.

• Co’NPEs: Although the commercial NPEs can act as arbitrager, they can also promote transaction.

• PE: most transaction actors are patent practicing entities and act as technology providers, intermediators, and absorbers in a technology transaction chain.

The role of market players…

Thank you