Philipp G. Sandner

The Market Value of R&D, Patents and Trademarks

This paper investigates the effects of trademarks on the market value of firms. The results show that trademarks have a positive effect on firm value. Next, the firms’ market values are regressed on indicators of trademark value such as trademark seniorities, the number of oppositions filed, and the number of product and services classes covered. We found that they at least partially reflect trademark value.

What is the Effect of the Financial Crisis on Venture Capital Financing? Empirical Evidence from US Internet Start-Ups

Employing a large dataset of venture capital investments in US Internet firms, we analyse the effect of the current financial crisis on the venture capital market. Using regression analysis, we find that the financial crisis is associated with a 20% decrease in the average amount of funds raised per funding round. This effect, however, can only be found in later funding rounds. We argue that firms in later financing rounds that need capital to survive cannot avoid a deduction induced by the financial crisis, whereas firms that seek initial funding postpone their funding and expansion plans until the capital markets have stabilized. Furthermore, firms in later phases of the venture cycle are more likely to be negatively affected by the weak IPO market than firms seeking initial funding. Our results suggest that the financial crisis can lead to a severe ‘funding gap’ in the financing of technological development and innovation.

China's R&D Explosion – Analyzing Productivity Effects Across Ownership Types and Over Time

In the past years Chinese firms increased their spending on R&D substantially and worked on achieving a higher quality level of R&D. We analyze whether different R&D activities show a positive influence on total factor productivity (TFP) for firms of different ownership types and across two time periods. Our panel dataset with annual information allows us to study listed firms over the two time periods 2001-2006 and 2007-2011. Privately owned enterprises (POEs) not only obtain higher returns from own R&D than majority and minority state-owned enterprises (SOEs), they are also able to increase their leading position. Overall strong increases in the size of patent stocks are related to a decreasingly positive or even vanishing influence on TFP. POEs not only produce R&D of the highest quality but are also the only ownership type profiting from higher quality. Up to now research collaborations allow almost no benefit with the only exception stemming from domestic collaborations with individuals. Our comprehensive analysis depicts strengths but also weaknesses of the corporate sector in China. We derive implications for the further development of economic policies.

Where There is a Sea There are Pirates: Response to Jungherr, Jürgens, and Schoen

In their comment, Jungherr, Jürgens, and Schoen (2010) challenged part of the results presented in our original article (Tumasjan, Sprenger, Sandner, & Welpe, 2010). The present response addresses their points of concern and demonstrates that the conclusions drawn in Tumasjan et al. (2010) are well supported by both data and analyses.

The Best of Both Worlds The Benefits of Open-specialized and Closed-diverse Syndication Networks for New Ventures’ Success

Open networks give actors non-redundant information that is diverse, while closed networks offer redundant information that is easier to interpret. Integrating arguments about network structure and the similarity of actors’ knowledge, we propose two types of network configurations that combine diversity and ease of interpretation. Closed-diverse networks offer diversity in actors’ knowledge domains and shared third-party ties to help in interpreting that knowledge. In open-specialized networks, structural holes offer diversity, while shared interpretive schema and overlap between received information and actors’ prior knowledge help in interpreting new information without the help of third parties. In contrast, actors in open-diverse networks suffer from information overload due to the lack of shared schema or overlapping prior knowledge for the interpretation of diverse information, and actors in closed-specialized networks suffer from overembeddedness because they cannot access diverse information. Using CrunchBase data on early-stage venture capital investments in the U.S. information technology sector, we test the effect of investors’ social capital on the success of their portfolio ventures. We find that ventures have the highest chances of success if their syndicating investors have either open-specialized or closed-diverse networks. These effects are manifested beyond the direct effects of ventures’ or investors’ quality and are robust to controlling for the possibility that certain investors could have chosen more promising ventures at the time of first funding.

Why do SMEs file trademarks? Insights from firms in innovative industries

Trademark filings have increased markedly over time. Although prior research has investigated the outcomes of trademark registration, including its effects on firm market valuation and productivity, little is known about why firms file trademarks. However, to interpret the increase in trademark filings and its economic effects, it is important to know and understand why firms file trademarks. Because trademarks are particularly important to small and medium-sized enterprises (SMEs), this study analyzes trademarking motives using a survey of 600 SMEs in innovative industries. An exploratory factor analysis yields three distinct motives: protection, marketing, and exchange. A cluster analysis reveals four distinct clusters of firms with respect to the three trademarking motives. A comparison of these clusters reveals significant differences in several industry- and firm-level characteristics, including participation in service industries and relationships with external parties. Implications for research on SMEs, trademarks, and intellectual property management are discussed.

University Patenting: A Comparison of 300 Leading Universities Worldwide

Despite a worldwide increase in university patenting, empirical studies have largely focused on analyzing university patenting in individual countries and regions. We provide analyses from an international perspective, examining patents at the top 300 universities worldwide. By providing a patent ranking system and an analysis of the determinants of university patenting, we enable an international comparison not only between different countries but also between universities within countries. A ranking of the top-patenting universities shows a huge predominance of US universities: 18 of the top 25 universities are located in the US, with the Massachusetts Institute of Technology (MIT) being ranked first. Our results show that the propensity to apply for patents is very high among US and Asian universities, while European universities lag behind. In addition to the home country, further determinants of university patenting are the quantity of the universities’ publications and a technological focus in areas such as chemistry and mechanical engineering. However, the size of a university and the quality of its publications are not found to be significant determinants.

Increasing the Creative Output at the Fuzzy Front End of Innovation -- A Concept for a Gamified Internal Enterprise Ideation Platform

In this study we conceptualize a gamified system for companies to be used in IT-backed ideation processes. We conducted two rounds of expert interviews in German and Austrian companies focusing on the challenges and obstacles of gamification systems within an enterprise setting. We then drew from the gamification literature and established eight stimuli, for a conjoint analysis. The survey among 75 employees revealed that the stimuli with a combination of collaboration and competition are the most favored one with respect to the intention to share knowledge. Specifically participants ranked the possibility to evaluate others or being evaluated as the most important characteristic. Our results add useful information to the boundaries of gamified systems and the acceptance of popular game elements in enterprises. We further highlight the final characteristics of the gamified system and what needs to be considered when implementing them into an enterprise setting.

A system framework for gamified Cost Engineering

This study develops a system framework and an enterprise IT solution for integrating gamification elements to efficiently implement and continuously perform Cost Engineering. Cost Engineering is a systematic approach to manage knowledge and competencies regarding costs reduction measures throughout the life cycle of products and is technology, resource and time intensive. Gamification as a non-monetary multidimensional incentive system holds great potential to implement and establish Cost Engineering in a novel and less resource demanding manner and stipulate knowledge sharing and dissemination. Building on a review of the relevant literature we conducted 20 interviews with experts from eight companies of the German and Austrian high-tech manufacturing industry to examine the system requirements from an organizational perspective. Analyzing the interviews, we found that companies need a flexible platform where the game elements help to align management objectives with concrete tasks, meet legislative regulations and have different evaluation methods. Our proposed system framework combines the organizational and IT requirements with gamification elements to efficiently steer Cost Engineering methods and best manage knowledge and competencies.

Self-Employment by Foreigners in Germany: Income Effects and Implications for Entrepeneurship Support Policies

The paper uses data from the German Socio-Economic Panel (SOEP) to analyze entrepreneurial activities by foreigners in Germany. The results from our regression analysis are the following: First, foreigners in self-employment are found to earn more than foreigners in a regular employment position. Second, foreigners seem to gain more from self-employment compared to German entrepreneurs. Also, the earnings increase from self-employment is larger for foreigners than it is for Germans. The findings are discussed from a policy and an entrepreneurship education perspective.