Effect Of Value Leakage On Commercial Investment Of Invention Patent

The economic development shows that the world economic is transforming from the traditional industrial economy era to the knowledge economy era. Factors to deternine a country's economic competitiveness, are no longer rich natural resources and cheap labor, but the owner and application to science and technology, particularly in high technology areas. There are more and more patent investment projects in the knowledge-based economy high-tech field. However, in the invention patents, utility model patents and exterior design patents, the value of inventions patented technology content is the highest. However, these projects can not develop without the support of funds, thus,in the final analysis, the key to implement invention patents is how to attract investors to invest in invention patent project ,so we need to assess the investment value of Patent project for investors ,to provide a basis for investors. With the patent projects transactions growing, Patents plays a more and more important role in the occupancy of market to access bigger economic benefits.Investors in possession of an invention patent, they will control and use a patented technology (or methods) rights in the effective duration of invention patents. When patent investment projects are in the uncertain situation, the implementation of investment managers can wait for opportunities, is not obligated to invest immediately. At the same time, the company has the opportunity to extend occupation of product market share, reduce costs, and acquire other aspects of advantages. In this way investors in the production of patent products, will get the possibility of increasing profits in the effective time.In other words, with investment opportunities, the immediate production of patent goods is very attractive. But investors in the concrete implementation of the process of the franchise will face great uncertainty of the market, which will cause instability in profits, particularly, investors are always worried that after production , the profits can not fully recover the cost of the investment. Investors may feel regret about today's investment. Clearly, in terms of investment opportunities of invention patents, waiting is valuable. The reason is that waiting will not make investment opportunities disappear, before investing, waiting and observing the changes in the market is obviously valuable, if the funds were invested in production, investors not only lost their cash income, but also lost valuable options.In addition, the competitive technological methods are usually used to achieve the same tech-purpose, That is ,franchise makes market entry costs of similar alternatives very high . But it just prevents the part of "too similar" to production. Therefore, in this paper, according to whether patent products have the characteristics of alternative products, invention patents will be divided into two kinds of production. One has alternative products, the other one has no., thereby the corresponding market is divided into monopolistic market and oligopolistic market. In monopolistic market, in terms of no substitute for the production of similar products of patent exclusivity investment projects, the barriers to entry market are relatively high, from real options analysis view, Real Options which is included in the no substitute for the production of similar products of patent exclusivity investment projects are generally exclusive options. In other words, in terms of these options, companies have full ownership, its decision-makers with investment opportunities include the right to decide when to invest, and not subject to the impact of other competitors. The competitive factors can not be considered in the process of evaluating its valueIn oligopolistic environment, competition in the interests of all parties is to contain each other, in the circumstances of that the delay options is only considered,the response of competitors will directly affect to return on investment of the leader and thus the effectiveness of delay options may be weaken because of the presence of competitors. The enterprises which have a strong market position is less worried about peer competition, they can exert more influence on the uncertainty of the market then to control and guide the market development trend. Even in the circumstances that market demand is uncertain, a strong enterprise also has the ability to cope with the challenge from weak competitors. Generally speaking, the company's competitive position of market strength will not affect each other's strategic choice, but only affect their investment decision-making. Commercial investment of invention patents in oligopolistic environment can take a leading strategy, can also take a delay strategic. In many cases, the leading strategic to gain competitive advantages is useful, such as brand recognition, a more efficient sales network, product standards setting, etc. The more balanced market forces are, the more valuable market-leading strategy is. It is concluded in this paper that it is necessary to introduce a competitive factor---the first advantage. In terms of companies, if they have the same competition position in the market, the first advantage is of great significance. Therefore, the delayed investment decision-making have to face competitors increaseas when alternative products appeared, which led to the loss of corporate excess profits increase, thus delay the decision-making is also a price to pay.Although the commercialization of invention patents stage face to a great uncertainty of the market, but in an oligopoly market, the value of investment opportunities should not be confined only to consideration of the value of the delay options, we should also consider impact of the result of investment game on the value of investment opportunities. This can be considered in two ways: on the one hand, if we only focus on the value of options, it may be more inclined to waiting; On the other hand when investors only see the current market competition, they may be hasty to make a decision-making immediately to invest for seizing the market. Therefore, they need a proper analysis framework to balance the investment decision-making.In this paper, regarding the characteristics of patents for inventions, the value leakage is expatiated as a starting point firstly,when making a extension of investment decision-making in the process of commercialization of invention patents investment decision-making, respectively, according to characteristics of the monopolize market and the oligopoly market, using real options theory and game theory to analysis the impact of value leakage on decision-making of commercial investment of invention patent. In the actual investment circumstances, the greater the uncertainty of the patent projects is, the greater the critical value is, the greater the possibility of delayed decision-making is. And in the process of delay the value leakage will happen. The main purpose of this study is that after taking into account the value leakage, it can be provided as the reference when evaluating patents project investment scientifically for direct investors opportunities and selecting the investment area and investment opportunities.