The effect of rarity and uncertainty on innovation value

Lars Alkærsig, Karin Beukel, Giancarlo Lauto

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    Abstract

    This paper addresses the core notions of the Resource Based View, that rarity provides superior performance. We examine the limits of rarity as a driver of performance in the process of innovation. We also claim that uncertainty affects this process, both directly and moderating the effect of rarity. Using patent data relative to hydrocracking – a mature technology experiencing periods of stable and
    unpredictable development – we find that rarity has a U-shaped effect on innovation value, as both rare and non-rare inventions are valuable. Uncertainty has an inverted U-shaped effect on innovation value, as in conditions of low uncertainty incremental innovation tends to prevail, while high uncertainty leads to imitation of successful practices. Low, but not high, uncertainty moderates the relationship
    between rarity and innovation value.
    Original languageEnglish
    Publication date2013
    Number of pages38
    Publication statusPublished - 2013
    Event8th annual conference of the European Policy for Intellectual Property association (EPIP 2013) - Telecom ParisTech, Paris, France
    Duration: 5 Sep 20136 Sep 2013
    Conference number: 8
    http://inomics.com/2013-epip-conference-8th-annual-conference-european-policy-intellectual-property-association-paris

    Conference

    Conference8th annual conference of the European Policy for Intellectual Property association (EPIP 2013)
    Number8
    LocationTelecom ParisTech
    Country/TerritoryFrance
    CityParis
    Period05/09/201306/09/2013
    Internet address

    Keywords

    • Rarity
    • Uncertainty
    • Innovation
    • Resource based view
    • Patent value

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