Small Companies and Value Capture from their Intellectual Properties: a Qualitative Study

Small companies and their intellectual properties (IPs) play an increasingly crucial role in a “well-functioning market economy”. In recent empirical studies, it is recognized that small companies carried out breakthrough IPs. However, more studies are needed to investigate how small companies strategically capture value from their IPs given their resource constraints. By analyzing the empirical case findings in the light of IP management theory and resource-based view (RBV), this study attempted to answer 1) how small companies capture value from their intellectual properties and 2) in their value capture, how small companies utilize their physical, organizational, and human capital resources and overcome resource constraints, if any. Interview data with seven case companies which possess valuable and radical IPs were used to identify patterns and differences among the value capture strategies. The results were reported on a within- and cross-cases basis, which led to the discussion of three propositions. Overall, this thesis identified how small companies commercialize their IPs and the crucial roles of network and radical patents for small companies.