Title: Diversity management of patents in M&A - a case of Japanese pharmaceutical firms

Authors: Seiya Shimanuki; Tomoko Saiki

Addresses: Department of Innovation, Graduate School of Innovation Management, Tokyo Institute of Technology, 3-3-6-907S, Shibaura, Minato-ku, Tokyo, 108-0023, Japan. ' Department of Innovation, Graduate School of Innovation Management, Tokyo Institute of Technology, 3-3-6-907S, Shibaura, Minato-ku, Tokyo, 108-0023, Japan

Abstract: The purpose of this study is to propose an analysis of pharmaceutical effect areas of patent data as output of research and development (R&D) activities and as resources of the firm in mergers and acquisitions (M&A). We used two M&A cases of Japanese pharmaceutical firms of the partners with different technology relatedness. It is demonstrated that M&A had a negative effect on the R&D activities of the consolidated firm of technologically heterogeneous partners. The results also show that there are no increases in the proportion of patents with the most diversified effect areas in M&A of technologically heterogeneous partners and there is an increase in another M&A of technologically homogeneous partners. It is advisable that the partner firms cooperate to manage their patents in order to maintain patents in diversified areas rather than managing their patents more diversified as a whole, in order not to have a negative effect.

Keywords: mergers; acquisitions; pharmaceutical firms; diversity management; patents; pharmaceutical effect areas; technology relatedness; homogeneous technologies; heterogeneous technologies; firm resources; Japan; R&D; research and development; patent data; negative effects; consolidated firms; diversified effect areas; technologically heterogeneous partners; technologically homogeneous partners; cooperation; Daiichi-Sankyo; Astellas Pharma; intellectual property management.

DOI: 10.1504/IJIPM.2012.049878

International Journal of Intellectual Property Management, 2012 Vol.5 No.3/4, pp.213 - 226

Available online: 18 Oct 2012 *

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