Assessment of commercialization strategy using R&D capability

Purpose – The purpose of this paper is to present a cooperation model identifying the R&D capability as the central driver of startup commercialization strategy, by which new startups can evaluate their relative R&D capability and consequently choose an appropriate commercialization strategy. Design/methodology/approach – A cooperation model has been constructed, and drawing upon the patent data of 91 aluminum nitride manufacturers, the implications of R&D capability for commercialization strategy are illustrated. Findings – The authors' analysis suggests that competitive interaction between startup innovators and established firms depends on the R&D capability of the startup innovators, which can be evaluated by patent data. Practical implications – For technologically efficient firms, a high level of integration to achieve the benefits of economies of scope will lead to more profits. However, for technologically inefficient firms, maintaining a low level of integration to achieve the benefits of specialization is the better strategy. Originality/value – This paper provides a simplified model which combines an evaluation of R&D capability using patent data with strategic decision making to facilitate successful commercialization in startups.