An empirical study on the influence of patents on the management performance of corporates

Background/Objectives: We would like to study empirically on the impact of the quantitative and qualitative aspects of patent rights on management performance on small and medium-sized enterprises that did not have much research due to lack of data. We want to examine whether the growth rate of sales in the management performance of small and medium enterprises after securing patent rights is different from that of general small and medium enterprises. Methods/Statistical analysis: We would like to analyze whether small and medium-sized enterprises that hold patents show an average sales growth rate of 9% or more, more than double the average sales growth rate of all small and medium-sized enterprises. In 2012, 278 small and medium-sized manufacturing companies with patents that took out loans through guarantees from the Korea Credit Guarantee Fund were selected as samples. The relationship between the average sales growth rate of these companies over the next five years and the quantitative and qualitative value of patents was analyze. Findings: Both independent variables(the number of patents, the average score of patents) were significant for distinguishing between corporates with an average growth in sales more than twice that of general small and medium-sized enterprises and those with less than twice the average sales growth rate. In this case, ‘the average score of patents’ of the two variables was found to be more important, and the discriminant power was greater. it can be said that the discriminant power is useful in order of ‘average score of patents’, ‘number of patents’. Improvements/Applications: In previous research, large companies were analyzed to focus on their past management performance and patent rights. In this study, it is meaningful that we looked at the variability in future sales of small and medium-sized enterprises with patents through empirical analysis. There are limitations that only average sales growth rate was used as a variable among indicators of a corporate's management performance in this study.