Effect of an open patent pool strategy on technology innovation in terms of creating shared value

In open patent pools (OPPs), members share their patents to each other. What gains do they expect by sharing patents? In this study, we analyze the effects of an OPP strategy on technological performance in terms of creating shared value (CSV). A panel regression was performed to compare the technological performance of firms in the open invention network (OIN), which is a Linux industry OPP, to those of non-OIN firms using their patent data. Our results demonstrate that the leading groups in the OIN achieved innovation by having more patent applications, forward citations, and collaborative activities than non-participants. Furthermore, OIN firms play a more significant role in promoting knowledge spillovers than non-participants. We demonstrate the positive effects of an OPP strategy on innovation by empirically measuring the technological performance of CSV strategies. Our findings provide insights for institutions that consider implementing an OPP strategy for innovation, including other types of open innovation.