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JOURNAL OF APPLIED BUSINESS AND ECONOMICS
The Use of Voluntary Public Disclosure and Patent Strategies to Capture
Value from Product Innovation
Author(s): Sharon D. James
Citation: Sharon D. James, (2014) "The Use of Voluntary Public Disclosure and Patent Strategies to Capture
Value from Product Innovation," Journal of Applied Business and Economics, Vol. 16, Iss. 5, pp. 11-26
Article Type: Research paper
Publisher: North American Business Press
Abstract:
Firms make tradeoffs in voluntarily and publicly disclosing R&D information. Disclosure can deter
competition by signaling a technological advantage. However, such disclosures might signal
technological opportunity and encourage competitors to develop competing innovations. This study
investigates the effect of industry- and firm-specific advantages on the influence of voluntary public
disclosure on competitors’ patenting in the same technology space. Theoretical predictions are tested on
a sample of 322 publicly traded firms between 1991 and 2004. The results are consistent with industry
and firm-specific advantages moderating the effectiveness of disclosure along with patents as a strategy
for capturing value from product innovation.
