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http://dx.doi.org/10.14400/JDC.2021.19.3.065

A study on the effect of the renewal-fee payment cycle in the decision of patent right retention: focusing on the sunk cost and endowment perspective  

Choi, Yong Muk (Division of Graduate School of Technology & Innovation Management, Hanyang University)
Cho, Daemyeong (Division of Graduate School of Technology & Innovation Management, Hanyang University)
Publication Information
Journal of Digital Convergence / v.19, no.3, 2021 , pp. 65-79 More about this Journal
Abstract
The purpose of this study was to research how emotional factors affect decision-making on the maintenance and abandonment of a patent, and to present new criteria for patent policies. The types of Korean patent abandonment were analyzed according to the patent holding period, and a questionnaire survey was carried out to verify whether there are differences among patentees in terms of sunk cost bias, endowment effect, and coupling or not. Individuals and small and medium-sized enterprises showed relatively greater emotional bias toward sunk cost and endowment effect than large companies, and the sunk cost effect decreased as decision-making experience increased. In addition, the reduction in the payment cycle of the patent renewal fee has a positive effect on the increase in the willingness to use the patent right, and the individuals and small and medium-sized enterprises has a greater synergistic effect than the case of large companies, in particular. This study are expected to play a part in establishing policies to minimize wasteful factors of patent assets based on the propensity of the patentees.
Keywords
Patent; Sunk-cost; Endowment effect; Coupling; Behavioral economy; Psychology;
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