International Journal of Application or Innovation in Engineering & Management (IJAIEM)

Web Site: www.ijaiem.org Email: editor@ijaiem.org

Volume 5, Issue 2, February 2016

ISSN 2319 - 4847

Convergence R&D Strategy Research based on

the Patent Analysis
Eun-Young Park1, Dong-Gi Kwag2*
1

Korea Institute of Industrial Technology, Korea

2*

Dept. Aeromechanical Engineering, Hanseo University, Korea

ABSTRACT
A wide range of analyses is possible, ranging from technological value forecasts to technological innovation assessments, using
patent information such as the number of applications, year, country, applicant, citation relation and the number of citations of
the patent, since the patent information is standardized data provided in the form of a time series, showing the history of a
technical field from the past to the present. Furthermore, this data can also be used as a tool to examine the direction of R&D
projects. This study suggested a systematic method by which a company can converge its technologies and other fields of
outside expertise, using patent information on core technologies, and the proposed methodology was verified in an objective
manner through empirical analysis.

Keywords: Convergence; Patent Analysis; Convergence R&D; Business Support

1. INTRODUCTION
Today, the concept of Convergence has become widely accepted around the globe. As enterprises have moved from
the conventional single industrial ecosystem to the modern complex industrial structure, a market for convergence has
also emerged, where businesses combine different technologies to develop new products and services that can create
new value for them. As a result, thanks to the accelerating trends for convergence among different technologies and
industries, a new competitive system is expected to be on the rise in many industries that had been categorized as
conventional in the past. As value chain structures have changed, due to the emergence of new agencies and the
expansion of networks, the entire industrial structure has also entirely changed [1]. In order to maximize the utility of
new technologies and keep up with the times, it is critical for companies to secure core convergence technology by
strategically promoting cooperation with private sector research, research institutes, academia, and government
organizations, if a business intends to upgrade its competitiveness in the market. This strategic approach is all the more
important given the ever-shortening innovation cycles and lifetimes of new technologies, due to the accelerated pace of
technological convergence, and the nature of core technologies, whose process of realization strongly depends on
experts in the field.
This study aims to suggest methods for securing new technologies using patent information as the key factor in
convergence R&D strategies. Patents hold significant value since they contain technological and marketable value,
along with creativity, inventiveness and economic feasibility [2]. Analytical data obtained from patents can play a key
role in the research planning process, including basic, applied, and development research [2]. This study explored
methods for assuming and forecasting the direction of R&D strategies, by forming an Object-Solution Matrix (O/S
Matrix) using a frame analysis based on patent information, and by determining which fields were being vigorously
studied, or those that were not, which are called vacant technologies.
This paper consists of an introduction and four chapters, as follows: In Chapter 2, a review is conducted of the
published literature relevant to this study. In Chapter 3, a research model of the analytical framework that this paper
suggests is introduced. In Chapter 4, the methodologies dealt with in the previous chapters are verified through case
analyses and, based on the result, the directions of the methodologies are suggested. Chapter 5 concludes this study and
provides implications.

2. LITERATURE INVESTIGATION
A patent is an objective and standardized document of technical information containing important data on technical
management [3][4] and can be utilized in forecasting flows in technology levels and innovation, as well as trends in
technological innovation [5]-[8] Through analysis of not only the technical content of the patent itself but also on the
scope of claims of the citation information of previous patents, trends in technical change and the emerging direction of

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International Journal of Application or Innovation in Engineering & Management (IJAIEM)

Web Site: www.ijaiem.org Email: editor@ijaiem.org
Volume 5, Issue 2, February 2016

ISSN 2319 - 4847

the new technology can be suggested, as well as the technological level of a business or a researcher in a specific field
[9]. The patent information contained in the citation information is significant in that it shows the flow of knowledge
between technologies as well as the businesses holding the technology. It also provides managerial information required
in the strategic decision-making processes within a company [10].
The ultimate purpose of a patent is to protect an innovation in which new ideas or technologies which have not existed
in the past are applied to a product or process, thereby reorganizing the market structure. By employing patents, a
business seeks to create new value and increase its total value [11].
As can be seen in Figure 1, Chesbrough (2006) suggested a conceptual model to determine the areas that are required
in establishing managerial strategies for a patent technology, by comparing the scope of a patent held by a company
and the range of its utility [12], and Yun et al. (2010) argued that the degree of open innovation can be analyzed by
looking at the composition of applicants of a patent [2].

Figure 1 Patent scope, rival patents, and technology usefulness [12]

Open innovation is about creating new value using accelerated technological innovation, by tapping into external
knowledge and technologies throughout the entire R&D process, from the brainstorming stages to commercialization
[2][13]. This open innovation approach is emerging as one of the new R&D strategies for several reasons. It is in line
with the ever-shortening technology life cycle, the intensified convergence and complexity of products, the increased
need for research collaboration among diverse fields due to the technology convergence, the ability to communicate
faster and easier between cooperating partners thanks to the advancement of the internet and information technology,
and the expansion of the global network [13][14][15].
Patent information is considered to be nearly the only data which is suitable for conducting qualitative researches on
the characteristics and performance of R&D programs. In effect, patent information is a valuable database accumulated
over a long period of time, which demonstrates innovative activities in almost all fields in a clear and distinctive way
[9]. Therefore, patent information can be used for identifying the technical strengths and/or weaknesses of competitors,
and for planning technology development projects [16]; determining priorities in R&D plans [17] or suggesting new
technology opportunities by discovering the vacant technologies. Most researches on patents have focused on the
statistical data, such as the number of applications, year, country, and the applicants of a patent, etc. Yet, with the
abundant patent citation data that has been accumulated today, patent information is frequently used for assessing the
value and influence of a technology, or for studying the expansion of technological information [18]. The number of
citations in a patent can be used as an index which objectively assesses the market values of the innovation outcomes
[19], in this regard, an economic model was suggested that employed the number of patent citations in measuring the
flow of knowledge internationally [19].

3. RESEARCH MODEL
This paper aims to identify trends in convergence R&D by utilizing an objective index, that is, patent information,
focusing on the technological innovations that could strengthen the internal and external capabilities of a company.
Based on the observation that the previous technological convergence depended heavily on the experts in that technical
field, this study seeks to suggest a supporting method that can be applied to any field without limitations by adding a
systematic approach based on the roles of experts. Technological knowledge can be drawn from a patent since it is
technological information. If semantic relations are given to the different parts of that knowledge, those pieces can be
connected regardless of the fields that they belong to [20]. Thus, the patent information can support the development of
convergence products and services, as well as providing solutions to selected problems, since it can provide relevant
technical knowledge to the experts in convergence technology areas.

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International Journal of Application or Innovation in Engineering & Management (IJAIEM)

Web Site: www.ijaiem.org Email: editor@ijaiem.org
Volume 5, Issue 2, February 2016

ISSN 2319 - 4847

Figure 2 Convergence R&D support process

After identifying the core technologies of a company through an analysis of internal and external capabilities, a patent
O/S Matrix analysis is conducted. According to the figure 2, the O/S Matrix is a method that forms an object-solution
matrix based on patent data, and by identifying the fields that are being vigorously studied, as well as the vacant
technologies, it suggests the direction of R&D plans. With this method and other relevant tools, it becomes possible to
divide areas with vacant technologies, and the fields protected by the patent barrier. It is also possible to form a
Matrix positioning designed to resolve the requests of a company, to deduce the technological convergence strategies of
the businesses holding the core technologies, and to suggest new directions for technological strategies.
The framework of this study involved the following steps: conducting analysis on the companys requirements and its
internal and external competencies; finding out the patent-based core technologies; suggesting a scenario of R&D
convergence supported by linking its own competencies with experts in other fields, and realizing the outcomes. In
order to produce an outcome, the company can develop or improve its products and services by utilizing the
competencies that it already has, or by developing a new convergence product by combining its own technologies with
the ones in other fields.

Figure 3 The research framework of the convergence R&D direction

Figure 3 clearly show that framework of the convergence R&D is processing. Procedure is shown the below
At Step 1, the internal and external competencies of a company are analyzed to determine the outcomes and requests
from the company, for the products and services that it wants to develop. Through an analysis based on interviews with
the CEO of the company and literature reviews, the scope of the front and rear markets and the industries related to the
items that are the subject of the analysis are specified and subdivided. At this stage, a company can understand which
competency it owns and which it does not, and can then begin to develop external competencies by formulating a

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International Journal of Application or Innovation in Engineering & Management (IJAIEM)

Web Site: www.ijaiem.org Email: editor@ijaiem.org
Volume 5, Issue 2, February 2016

ISSN 2319 - 4847

network of cooperation with outside entities.

At Step 2, existing, new, and converging technologies relevant to the desired outcomes are identified, based on the base
data, and key technologies are determined, and directions for the convergence R&D are specified using the relevant
patent information.
At Step 3, a series of scenarios for convergence R&D directions can be suggested based on the patent O/S Matrix
analysis and 9-Windows analysis. Among those scenarios, a final one is selected after considering the owned
competencies, areas where the experts in other fields have been invited, the feasibility of the R&D within the company,
the expected R&D period, profitability, and market creation and expansion potential.
At Step 4, the R&D activities are conducted following the scenario, and the desired outcomes are realized with the core
technologies.

4. CASE ANALYSIS AND RESULT

The proposed framework for establishing convergence R&D directions based on patent data was verified through the
case analysis of companies. <Table 1> shows the inherent competencies of the selected companies and their areas of
collaboration with other fields. The table was drawn based on the KSIC (Korea Standard Industry Code).
Table 1 : Company Capability Classification
Company (Field)

Capacity division

A company
(Chemistry)

Internal Competency (2)

Technology Field
Composites Manufacturing Technology
Materials Process Technology

Other areas linked (1)

Polymer Recycling Technology

U- computing devices and peripherals

B company
(Electronic)

C company
(Bio)

Internal Competency (2)

System Integration
Other areas linked (1)

Manufacturing and Evaluation Measurement Equipment

Internal Competency (1)

Bio Process Technology

Bio Process Technology

Other areas linked (2)

Bio-Analytical Instruments
Automation-related measurement/sensor technology

Internal Competency (2)

RFID/USN Service
D company
(Robot)

Robots and Intelligent control technology

Other areas linked (3)

Robot Design Technology

Product Design Technology

Internal Competency (1)

E company
(IT)

RFID/USN Service
Sensor Components

Other areas linked (3)

Animal biological data analysis (non-classified areas)

Product Design Technology
Hydraulic Components

Internal Competency (2)

Sensors and Instrumentation components

F company
(Machine)

Fluid Control Instruments

Other areas linked (2)
Product Design Technology

Internal Competency (1)

G company
(Electronic)

Display measurement and Inspection equipment

Optical Appliance

Other areas linked (2)

Optical Material

The solutions for outcomes can be categorized into inherent competencies and borrowed competencies. The inherent

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International Journal of Application or Innovation in Engineering & Management (IJAIEM)

Web Site: www.ijaiem.org Email: editor@ijaiem.org
Volume 5, Issue 2, February 2016

ISSN 2319 - 4847

competencies refer to the capabilities owned by the company, while the borrowed ones are the capabilities that can be
secured by forming a collaboration network with outside experts. In realizing a convergence product and service, the
external competencies play an important role.
The case companies in this study were found to have more than 1 inherent competency and more than 2 competencies
borrowed from outside entities. Company A and Company B were found to have more inherent competencies than
borrowed ones, while other companies were the opposite case. Companies D, E, and F demonstrated strong
convergence factors in realizing products and services, as they collaborated in the field of product design technology,
which holds non-engineering competencies.

Figure 4 Business case of applying process

Figure 4 is a schematic diagram illustrating the scenario-formulating process of the convergence R&D directions of a
case company. This company held technologies on a hydro-pneumatic press, a measuring sensor, and a flow controlling
measuring unit, and aimed to develop a portable flow and hydraulic control instrument. This was a case where a new
function and necessary improvements were added and made to an existing product, based on the convergence R&D
direction scenario, with core technologies drawn from patent information. This company successfully developed a
portable flow meter, able to monitor and check the flow with no limitations on time and space, as the final outcome.

5. CONCLUSION AND IMPLICATIONS

In this study, a method for identifying directions for convergence R&D was explored, based on core technology using
patent information. The procedures used to determine the directions for convergence R&D were: data accumulation to
conduct a competency analysis of a company; analysis of existing data; core technology positioning; and identifying a
scenario. The core technologies were used in positioning vacant technologies, and others protected by patent barrier, in
the patent O/S Matrix, thereby producing scenarios. These scenarios suggest directions for convergence R&D using
inherent competencies and an external cooperation network, and the final outcome is realized based on the scenario
that best suits the circumstances of the company.
A wide range of analyses is possible, ranging from technological value forecasts to technological innovation
assessments, using patent information such as the number of applications, year, country, applicant, citation relation and
the number of citations of the patent, since the patent information is standardized data provided in the form of a time
series, showing the history of a technical field from the past to the present. Furthermore, this data can also be used as a
tool to examine the direction of R&D projects. This study suggested a systematic method by which a company can
converge its technologies and other fields of outside expertise, using patent information on core technologies, and the
proposed methodology was verified in an objective manner through empirical analysis.
The limitation of this study, however, is that forecasting the future directions of core technologies may not be
sufficiently reliable because, by nature, patent information is past data. Therefore, a study suggesting a method to
address this limitation will need to follow.

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Web Site: www.ijaiem.org Email: editor@ijaiem.org
Volume 5, Issue 2, February 2016

ISSN 2319 - 4847

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AUTHOR
Eun-Young Park received the B.S. degree in Mechatronics Engineering, Chungnam National University;
M.S. degree in Management of Technology, Hanyang University. Now she is a researcher at Korea Institute
of Industrial Technology. Her areas of the research interest are Service Science, Industrial Convergence
Technology and Technology Policy.
Dong-Gi Kwag received the M.S. and Ph.D degrees in Mechanical Engineering from Korea Aerospace
University in 2005 and 2011, respectively. During 2011-2014, he works for a Korea Institute of Industrial
Technology. Now he is working in the Dept. Aeromechanical Engineering of Hanseo University. He is
interested in convergence, mechanical control and dynamics.

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