The Technology Diffusion in Patent Transactions Network: An example of TFT-LCD industry @Picmet2016

1. An example of TFT-LCD industry
National Chi Nan University,
Taiwan
TE-10.1
PICMET 2016, Hawaii
Hung-Chun Huang Ph.D.
Hsin-Yu Shih Ph.D.
Tsung-Han Ke Ph.D.

2. Research background
TE-10.1 PICMET 2016, Hawaii

5. What distinctive feature of a patent
transaction market?
How a patent transaction network do in
multilateral environment?
Exactly what NPEs process a patent
transaction network remains uncertain.

6. Data and Methodology
TE-10.1 PICMET 2016, Hawaii

7. TFT-LCD technology & FPD industry
PICMET2016, Hawaii

8. Data & Process
PICMET2016, Hawaii

9. Social network analysis
PICMET2016, Hawaii

10. Social network analysis
PICMET2016, Hawaii

11. Results and Findings

12. C/P analysis
Periods I. 1978-1989 II. 1990-2001 III. 2002-2012
Network Scale N 60 273 411
Core
Numbers (%)
4 (7%) 6(2%) 22(5%)
Periphery
Numbers(%)
56(93%) 267(98%) 389(95%)
Interactive
Density
PICMET2016, Hawaii
0.00
0.004
0.003
0.005
0.006
0.004
0.250
0.833 0.110
0.006
0.003
0.002

13. PICMET2016, HawaiiSmall-worldanalysis

14. Core group analysis I,II
PICMET2016, Hawaii
Period I Code Name (Country, PE/NPE) In-degree
centrality
Out-degree
centrality
Betweenness
centrality
H83 Hughes (US, PE) 2 1 2
R1 RCA 1 (US, PE) 1 1 2
T197 TRW, Inc. (US, PE) 0 3 0
U40 USGO 2 (US, NPE) 14 0 0
Period II Code Name (Country, PE/NPE) In-degree
centrality
Out-degree
centrality
Betweenness
centrality
I88 International Rectifier(US, PE) 7 14 258
H54 Hitachi (JP, PE) 14 15 84
H62 Hokkaido Electric (JP, PE) 4 6 10
F88 Fujikura (JP, PE) 4 5 0
N59 NEDO 3 (JP, NPE) 22 0 0
T144 Tokyo Gas (JP, PE) 4 5 0
NEDO: New energy and industrial technology development Organization, Japan
USGO: United States of America as represented by NASA, government offices, and military

15. Core group analysis III
PICMET2016, Hawaii
Period II Code Name (Country, PE/NPE) In-degree
centrality
Out-degree
centrality
Betweenness
centrality
N44 NEC 4 (JP, PE) 6 419 1,875
H54 Hitachi (JP, PE) 30 91 1,685
I44 ITRI 5 (TW, NPE) 489 537 1,557
C62 Chimei (TW, PE) 172 73 1,452
S15 Samsung (KR, PE) 136 10 1,367
S74 Seiko (JP, PE) 29 56 1,171
K55 Royal Philips 6 (NL, PE) 62 175 1,075
S266 Sumitomo (JP, PE) 7 19 997
K75 Kyoceraco. (JP, PE) 11 8 935
A215 AUO 7 (TW, PE) 293 64 690
M39 Matsushita (JP, PE) 3 125 341
T168 TPO Displays (TW, PE) 128 65 253
T152 ToppolyOptoelectronics (TW, PE) 77 2 209
F90 Fujitsu (JP, PE) 1 438 128
I105 IPG 8 (UK, NPE) 7 12 76
I88 International Rectifier (US, PE) 4 6 72
C80 Chunghwa Picture (TW, PE) 67 94 68
S26 Sanyo (JP, PE) 1 78 61
H11 Hannstar Display (TW, PE) 71 64 43
I82 IBM 9 (US, PE) 0 392 0
N59 NEDO 3 (JP, NPE) 10 0 0
U5 U.S.Philips (US, PE) 0 77 0

16. PICMET2016, HawaiiCore groupanalysis

18. PICMET2016, Hawaii
1. a high structuralize market; with a minority
of core firms holding large patent
transactions.
2. core firms and periphery firms are
rear transaction.
3. core firms have developed as
social closure clusters to trade
their technologies.
Distinctive features of a patent transaction market
0.006
0.004
0.110
0.002

19. PICMET2016, Hawaii
1. a mature period in a patent transaction
market is exhibited as clusterization
2. a small-world structure whereby a limited
number of players maintain large
technological or patent monetization
portfolios.
In terms of technology diffusion…
Mature market
SWN
QSmall-World
=38.999

20. PICMET2016, Hawaii
• GO’NPEs: the role of governmental
organization NPEs are notable in each period.
They play the roles of technology provider,
integrator and intermediator.
• Co’NPEs: Although the commercial NPEs can
act as arbitrager, they can also promote
transaction.
• PE: most transaction actors are patent practicing
entities and act as technology providers,
intermediators, and absorbers in a technology
transaction chain.
The role of market players…