The patent portfolio for strategic R&D planning

Empirical research shows a discrepancy between the perceived importance and the actual level of information on competitor's R&D strategies. It is argued that patent information might be used to overcome this information deficit. However, empirical research further reveals that patent information is rarely used in strategic R&D planning. We pick up this issue and introduce a patent portfolio, which, as it is known from various technology portfolios, helps companies to manage the effective allocation of scarce R&D resources. Based on patent data from 6 German and Japanese mechanical engineering companies we show the application of patent portfolios for strategic R&D planning purposes. The patent portfolio proves to be a very valuable tool for R&D decision makers. Based on the experiences made in the case study, recommendations for the effective use of patent portfolios are formulated.