Use new Intellectual Property to deal with scarce resources for new initiatives

Part 4 of “The Digital Transformation Roadmap”

patent-380-citations-feb2016

Which is your best strategy — according to McKinsey research that studied the market performance of 1,600 companies:

Static investments:  Keep making the same general year-after-year investments in the same businesses, talent, and research?

Opportunistic investments: Or should your company adjust its resource allocations based on the performance and market opportunities of each division?

McKinsey discovered that most companies follow a “static” investment pattern, but they were out-performed by “opportunistic” companies:  “Our research suggests that after 15 years, it will be worth an average of 40 percent more.”

In a changing world, it’s obviously not smart to keep investing in what succeeded yesterday. The trick is to know what will succeed the most tomorrow.

The latest digital innovations present a special challenge. Rather than analyzing available data, many executives throw up their hands and say the world is changing too quickly to know which innovations to pick.

But what if there were leading indicators that showed which innovations are most likely to succeed?

After all, an innovation’s cost will always be lowest at the start of its life:  The more that is done with a valuable innovation, the more valuable and expensive it is priced.

What if you had a crystal ball that had been quantitatively shown to indicate which innovations will have the best likelihood of success…

Indicators of innovation adoption and value

In less than 3 months after it was issued, there are over 380 citations of the first Expandiverse Technology patent application and patent, by subsequent patents (U.S. Patent Application 13068942; U.S. Patent 9183560; expires May 2033).

This includes over 75 patent citations from 8 of the 10 biggest tech companies in the world: Apple, Google, Samsung, Microsoft, IBM, Intel, Oracle and Hon Hai (Foxconn).

The Expandiverse patent specification is 1,400 pages. The U.S. Patent Office divided this into 31 technology categories. As long as a patent application case is open, even hundreds of new patent applications can be filed until this patent’s IP expires.

Expandiverse IP is expected to expire in 2031 through 2033.

Tech companies’ patents that already cite the first Expandiverse patent

patent-citations-some-tech-cos-feb2016

Leading indicators

Adoption indicator: The most interesting indicator of patent contributions was calculated in “Prediction of Emerging Technologies Based on Analysis of the U.S. Patent Citation Network.” The authors said, “A predictor, called the citation vector, is defined for characterizing technological development to show how a patent cited by other patents belongs to various industrial fields. The clustering technique adopted is able to detect the new emerging recombinations, and predicts emerging new technology clusters.” (emphasis added)

 

Value indicator: According to research, patent “citations indicate the extent to which those innovations turn out to be ‘important’ and hence presumably more valuable” (p. 17 in “Market Value and Patent Citations” in the Rand Journal of Economics)

  • The mean number of citations per patent is three. (p. 32)
  • Only a few dozen (out of millions of patents) receive 100 citations. (p. 25)
  • Just four patents received more than 200 citations. (p. 15)
  • Firms with 20 citations and more “command a staggering 54% market value premium.” (p. 4; emphasis added)

 

Prior patents indicator:  Dan Abelow’s three core patents show atypical numbers of citations:

  • In less than 3 months after it was issued, the first Expandiverse Technology patent application and patent has over 375 citations by subsequent patents (U.S. Patent Application 13068942; U.S. Patent 9183560; expires May 2033). This includes 75 patent citations from 8 of the 10 biggest tech companies in the world: Apple, Google, Samsung, Microsoft, IBM, Intel, Oracle and Hon Hai (Foxconn).
  • Abelow’s patent on digital content and accessibility has over 190 citations (U.S. Patent 5251294).
  • Abelow’s patent on digital communications has over 675 citations (U.S. Patent 5999908).

 

Prior patents licensing indicator:  Dan’s previous patents are in the fields of digital content and accessibility, and digital communications. Dan sold his previous patents and IP portfolio in 2004, and the new owners licensed those patents to over 500 companies that included:

Licensees

 

Continuous contributions indicator: After selling his previous patent portfolio and IP, the revenue from that sale was used to fund the creation of Expandiverse Technology and Digital Earth 2025 Architecture:

expandiverse_stacked_350_px

website-logo-medium5

Timeline indicator:  The inventor’s projected timeline for Expandiverse Technology is currently through 2025.

timeline-2007-to-2025

 

Image sources: All logos are the property of their respective owners. All other images are copyright Dan Abelow.