The technology diffusion in patent transaction network: An example of TFT-LCD industry

This study investigates several distinctive features of a patent transaction market. Through social network analysis, a patent transaction market can reveal the relationship between portfolio clusters, the position of key market players, as well as the behaviors of patent practicing entities (PEs) and non-practicing entities (NPEs). This study's findings show: first, a mature period for a patent transaction market exhibits clusterization and a small-world structure whereby a limited number of players maintain large technological or patent monetization portfolios. Second, the network evolution of a technology market is asynchronous to technology development. Third, technology diffusion in patent transactions will demonstrate a pattern of cooperation, and the typology of a technological transaction chain The result not only reveals the IPR strategy of leading technology firms but also demonstrates the social structure of their competitive advantage. This analysis provides insights into patent transaction networks, and also addresses management implications for firms interested in acquiring market competition or market governance.