7.2 R ESULTS
7.2.2 Reliability and Validity Measures
7.2.2.2 Validity Measures
7.2.2.2.2 Intercorrelation of the research constructs' analysis
7.2.2.2.2 Intercorrelation of the research constructs' analysis
Note: for the sake of simplicity and clarity, the following analysis has for purpose to highlight only some of correlations having been identified. For a detailed overview, please refer to the "general pattern" and the previous table, which display accurately all the significant correlations found.
The correlations having been found thanks to the table above are highlighted in the following lines.
Therefore, the first finding regards the commercial value of patents. Indeed, patent commercial value is strongly correlated with the degree of innovation, which means that companies will tend to hold patents, the more they will be innovation‐oriented.
Afterwards, the second interesting finding regards the commercial value of utility model, which reveals initially a negative correlation with the number of countries in which the company is established, and secondly, a positive correlation with the degree of innovation. Indeed, the first one means that the more the company is operational abroad, the less it will use utility model. The second underlines that companies tend to possess utility model as one goes along their degree of innovation will increase.
In addition to above, the results reveal that protection efficiency is correlated with the company's age and company's size, as well as the percentage of turnover engendered abroad. Therefore, the perception of protection efficiency within the country in which companies operate will depend on the firm profile, more accurately the company's age and company's size, and its commitment abroad.
Going one step further in the analysis, another interesting correlation regards the External IP assistance with the degree of innovation. Indeed, the more the company's degree of innovation, the more the external IP assistance. The assumption is that companies will tend to seek the assistance of external offices or institutions when their degree of innovation increases, that is to say, when they produce cutting‐edge technologies/products requiring effective protection in order to prevent any infringements.
Finally, the last highlight regards the informal protection methods. Indeed, informal methods are correlated with the government measures, which is once again, a very interesting finding. The more the Government's measures for improving the protection of IPRs will be effective, the more company will take support on informal protection methods, such as by concluding confidentiality agreement or agreement of non‐competition with employees, and vice versa.
65 7.2.2.2.3 General Pattern
Firm profile
Type of firm (qu0.3)
Age (qu0.7)
Degree of
internationalization (qu0.6, qu0.9)
Sector (qu0.10)
Degree of innovation (qu2)
Protection efficiency (qu10.1, qu10.2)
Administrative procedures (qu10.10, qu10.11)
Costs related (lawyers, assistance) (qu10.8, qu10.9)
Government’s measures & efficiency To attract financing (qu5.1)
To be more attractive to partners (qu5.2) To increase bargaining power (qu5.3) To facilitate R&D cooperation (qu5.4) To have high return on investment (qu5.5) To have direct income through licensing (qu5.6) To have a stronger market position (qu5.7) To improve the advertising impact (qu5.8)
No consideration of the relevance of these methods (qu4.6)
The protection can disclose information to competitors (qu4.7)
IP track record & operational issues
IP Track Record (qu3.1 to qu3.4)
IP Management strategy (qu6)
Informal protection methods (qu11.1 to qu11.5) Patent (qu9.1)
Utility model (qu9.2) Trademark (qu9.3) Design (qu9.4) Copyright (qu9.5)
External IP assistance (qu7) Mode of establishment
(qu0.8)
Size (qu0.4, qu0.5
Informal protection methods (qu11.1 to qu11.5)
Check infringements (qu0.8)
0.97**
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7.2.3 CORRELATION BETWEEN THE MOTIVATIONS TO OWN IPR VARIABLES AND OTHER VARIABLES
1 2 3A 3B 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
To attract financing ‐0.7 ‐0.8* 0.89** ‐0.11 0.01 ‐0.06 0.36 0.14 ‐0.14 ‐0.25 0.75* 0.68 0.45 0.5 0.31 0.13 1 0.21 0.21 ‐0.06 0.54
To be more attractive
to partners ‐0.33 ‐0.39 0.46 ‐0.22 0.03 ‐0.03 0.61 ‐0.18 ‐0.18 ‐0.53 0.27 0.22 0 0 ‐0.03 0.0 1 0.31 0.31 0.03 0.52
To increase
bargaining power ‐0.94** ‐0.88** 0.95** 0.10 ‐0.19 ‐0.28 ‐0.18 0.22 ‐0.31 0.13 0.9** 0.93** 0.52 0.9** 0.33 0.026 1 0.3 0 ‐0.09 0.28
To facilitate R&D
cooperation 0.06 0 0 0.43 0 ‐0.12 0.12 0 ‐0.55 ‐0.49 0.06 ‐0.12 ‐0.35 ‐0.3 ‐0.58 0.16 ‐ 0.4 0 ‐0.36 ‐0.37
To have high return
on investment ‐0.23 ‐0.9 0.46 ‐0.22 0.76* 0.68 0.09 0.28 ‐0.09 0.46 0.43 0.09 0.45 0.31 ‐0.01 0.86 1 0.21 0.73* 0.39 0.46 To have direct
income through licensing
‐0.52 ‐0.2 0.53 ‐0.25 0.33 0.22 0.22 ‐0.21 ‐0.53 ‐0.32 0.42 0.22 0 0.32 ‐0.33 0.44 1 0.7 0.7 0.42 0.44
To have a stronger
market position 0.20 0.52 ‐0.17 ‐0.33 0.73* 0.72 ‐0.03 ‐0.04 ‐0.4 0.46 ‐0.17 ‐0.42 0 ‐0.06 ‐0.31 0.73 ‐ 0.21 0.73* 0.63 0.18
To improve our
advertising impact 0.97** 0.71 ‐0.8* 0 0.32 0.38 0.38 0 0.36 0.18 ‐0.78*
‐
0.88** ‐0.35 ‐
0.98** ‐0.25 0.18 ‐1 0.40 0 ‐0.12 ‐0.21
To enhance our
reputation 0.83* 0.38 ‐0.47 0.32 0.44 0.43 0.31 0.45 0.31 0.37 ‐0.37 ‐0.62 0 ‐0.8* ‐0.12 0.36 ‐1 ‐0.5 ‐0.1 ‐0.4 ‐0.28
To prevent piracy by
competitors 0.01 0.02 0.12 0.32 0.46 0.4 ‐0.5 0.59 ‐0.04 0.72 0.32 0.06 0.43 0.3 0.01 0.68 ‐1 ‐0.1 0.1 ‐0.06 ‐0.23 To block competitors ‐0.62 ‐0.38 0.56 0.32 0.07 ‐0.03 ‐0.62 0.31 ‐0.5 0.19 0.71 0.56 0.34 0.78* ‐0.06 0.28 ‐ 0.4 0.1 0.01 ‐0.1
First of all, as a reminder, below the necessary conditions to accept or reject any correlation. Indeed, in statistics, correlation is confirmed when the p‐value is less than 0.05, which means that there is only a risk of 5% to make a mistake by accepting the correlation. Note: when the result is followed by
**, it means that the relationship is significant at the 0.01 level, when followed by *, the relationship is significant at the 0.05 level.
REMINDER ‐ CORRELATION ACCEPTANCE CONDITIONWe must reject H0 and conclude that the relationship between variables exists if the p‐value (asymptotic significance bilateral) is less than 0.05 (95%) or 0.01 (99%)
Si p > 0.05 Correlation not confirmed. The relationship does not exist until proven. Independency.
Si p 0.05 Correlation confirmed. The relationship exists. Dependency.
Therefore, regarding more accurately the correlation between the motivations to own Intellectual Property Rights variables and others variables, the following analysis has for purpose to present the most relevant correlations found between variables. For a detailed overview of all correlations , please refer to appendix.
7.2.3.1 To attract financing
Korean firms correlate the attraction of funds with the percentage turnover earned outside the country, and the protection efficiency. Indeed, going one step further what is being said, companies desiring to attract financing will generate a share of their turnover outside the country in which they are established. The assumption is that by interacting not only within the country but also with foreign partners, firms have more opportunities to attract foreign investors. In addition, enterprises seeking further funds will (probably) be more aware about the protection efficiency by assessing if IPR are clearly defined and well protected by law within the country.
7.2.3.2 To increase bargaining power
Results reveal significant correlations with the percentage turnover earned abroad, the protection efficiency and administrative procedures within the country in which companies are established, and costs related. Indeed, in order to increase their bargaining power, once again firm tend to generate a portion of their turnover abroad and focus on the efficiency protection within the country. In addition, they also tend to carefully determine whether the necessary time to protect their innovations is short or long, as well as the administrative procedures are reasonable. Finally, the higher the related costs, the more the power of negotiation.
SÉMINAIRE DE SYNTHÈSE Aygün Erkaslan
7.2.3.3 To have high return on investment
In addition to above, enterprises correlate to have a high return on investment with the degree of innovation, and the external IP assistance. Indeed, innovation‐oriented is significantly correlated with expectation of high return on investment. Therefore, the higher companies are innovation‐oriented, and the more they are expecting high ROI. Furthermore, it also seems to have a significant relationship between having an external IP assistance and to have high return on investment.
7.2.3.4 To have a stronger market position
At this stage of the analysis, results reveal significant correlations between the fact of having a stronger market position with the degree of innovation, the satisfaction of IP Office concerning trademark, and the external IP assistance. First of all, it seems to be easily understood that being strongly innovation‐oriented may provide the company with a stronger market position, and therefore, to overcome competition. In addition, the more satisfaction of IP Office within the country regarding trademark, the highest probability to have a stronger market position. Moreover, companies correlate also a stronger market position with an external IP assistance. Indeed, the assumption is that if companies are provided with external assistance regarding Intellectual Property Rights from specialized agencies or offices, opportunities for having a stronger market position could increase because they will receive tailored and professional assistance.
7.2.3.5 To improve our advertising impact
First of all, the first finding reveals a significant relationship with the company's age. Therefore, given the high level of correlation, the desire to improve advertising impact is correlated with the company's age. Going one step further what is being said, the protection efficiency is negatively correlated with the fact to improve advertising impact, which means that a lack of efficient protection within the country will lead companies to improve their advertising impact. In the same vein, the more administrative procedures, the more advertising impact. The last finding regards the related costs. Indeed, the analysis reveals a positive correlation, that is to say that Korean companies tend to improve their impact when the costs are high, such as lawyers costs and IP assistance costs.
7.2.3.6 To prevent piracy by competitors
The only correlation that results reveals concerns the satisfaction of IP Office regarding trademark.
Therefore, it seems that preventing piracy by competitors is more facilitate when companies are satisfied with the domestic IP Office. Thus, the assumption is the following: if companies are satisfied with the domestic IP Office, it means that services and advices provided by the Korean office are well‐done, and therefore, allow companies to prevent any piracy or infringements.
7.2.3.7 To block competitors
Above all, the fact to protect the company from the competition requires logically important funds, and therefore, requires to mobilize enough resources. To this end, the analysis reveals a positive relationship with the related costs. Indeed, the motivation to own Intellectual Property Rights, more accurately in order to block competitors, engender an increase of both attorneys and IP Assistance.
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7.2.4 CORRELATION BETWEEN THE REASONS TO NOT OWN IPR VARIABLES AND OTHER VARIABLES
1 2 3A 3B 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
No need ‐0.28 ‐0.26 0.02 0.44 ‐0.1 0 ‐0.5 0.54 ‐0.16 0.57 0.07 0.13 0.18 0.13 0.14 0.94* ‐
0.86 ‐0.27 0.54 ‐0.26 0.39
Too bureaucratic
procedure ‐0.29 ‐0.29 ‐0.14 1** ‐0.44 ‐0.59 ‐0.88* 0.15 ‐0.91* ‐0.14 0.14 0.3 ‐0.61 0.3 ‐0.66 0.0 ‐
0.86 0.57 ‐
0.57 ‐1** ‐0.44
No enough
knowledge 0.68 0.8 ‐0.8 0 0.34 0.57 0 0.47 0.35 0.8 ‐0.8 ‐0.82* 0 ‐0.82* 0 0.31 0 ‐0.81 0 0 ‐0.22
Too expensive 0.74 0.59 ‐0.14 ‐0.16 0.88* 0.88* 0.44 0.91* 0.30 0.88* ‐0.14 ‐0.76 0.61 ‐0.76 ‐0.16 0.89 0.86 ‐0.57 0.57 0 ‐0.14
Difficult to enforce
rights 0.72 0.72 ‐0.72 0.40 0.36 0.36 ‐0.18 0.55 ‐0.18 0.54 ‐0.54 ‐0.74 ‐0.25 ‐0.74 ‐0.61 0.25 0 ‐0.33 ‐
0.33 ‐0.57 ‐0.72
No consideration of the relevance of these methods
0.76 0.76 ‐0.52 ‐0.14 0.65 0.81* 0.26 0.73 0.43 0.94** ‐0.55 0.86* 0.36 ‐0.86* 0 0.6 0.5 ‐0.77 0.25 0 ‐0.132
The protection can disclose
information to competitors
0.97** 0.87* ‐0.41 ‐0.28 0.87* 0.87* 0.56 0.63 0.36 0.667 ‐0.41 ‐
0.94** 0.35 ‐
0.94** ‐0.28 0.6 0.5 ‐0.77 0.25 0 ‐0.46
7.2.4.1 No need
First of all, the fact of not to need Intellectual Property Rights is strongly correlated with the IP Office Satisfaction. Indeed, this finding is somehow amazing because the more the IP Office Satisfaction is high, the more companies feel not to need IPRs.
7.2.4.2 Because too bureaucratic
At this stage of the analysis, results reveal correlations with the number of countries in which companies are established, the commercial value of utility model and design, and check infringements. According to the results obtained, companies do not own Intellectual Property Rights because the process is too bureaucratic. More accurately, it seems that the more the number of countries where firms are established is high, the more companies consider the procedure as being too bureaucratic. However, the commercial value of both utility model and design are negatively correlated, that is to say, the more the companies hold utility model and design, the less the procedure is seen as being bureaucratic, and vice versa.
7.2.4.3 No enough knowledge
Korean firms correlate "negatively" the lack of having enough knowledge with the administrative procedures and the related costs. First of all, according to the results, the more knowledge is low, the less administrative procedures are ineffective. Regarding more in‐depth the related costs, it is easily understood that when companies encounters difficult to got enough knowledge, the related costs are low. The assumption is that firms are therefore not spending funds to lawyers and IP Assistance, and thus, the expenditures decrease.
7.2.4.4 Too expensive
Firstly, let us focus on the relationship with the degree of innovation. Indeed, the more the degree of innovation is high, the more IPR are seen as being too expensive. Therefore, protecting innovations and new cutting‐edge technologies are very high, regardless of company size. Thus, the assumption is that companies are not owing IPR because they requires to spend important financial resources. In addition, the commercial value of patent, trademark, and copyright are also correlated with "too expensive". Indeed, as stressed, the fact to protect innovations in order to prevent infringements is costly, and therefore, holding patent, trademark, and copyright will also engender an increase of perception of being too expensive.
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7.2.4.5 No consideration of the relevance of these methods
In addition to above, companies tend to not own Intellectual Property Rights because they do not consider these methods as being relevant. This finding is correlated with patent and copyright commercial value, administrative procedure, and finally the related costs. Regarding more accurately the patent and copyright commercial value, companies do not use such method in order to be effectively protected against infringements, because they are perceived as being not relevant. In addition, the more the administrative procedure, the more no consideration of the relevance of these methods. And the more the related costs, the more no consideration of the relevance of these methods.
7.2.4.6 The protection can disclose information to competitors
Additionally to above, and going one step further, some companies consider the protection as being a mean to disclose key information to competitors. Therefore, the more company's age and size are important, the more the risk to disclose information is high. Indeed, the surveyed companies do not own IPR due enterprise's philosophy and strategy. In the same vein, the more the degree of innovation, the more the risk of disclosing crucial information to competitors. The same scenario is repeated for the commercial value of patent.
8 . C ONCLUSION
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8.1 D
ISCUSSION OF KEY FINDINGS OF THE SURVEY IN THE CONTEXT OF THE NATIONAL BACKGROUND
8.1.1 MACRO‐LEVEL (ENVIRONMENT)
Findings regarding the macro‐level reveals many interesting information that must be highlighted.
Let us remind that the Government's attitude towards intellectual property is very favorable, as witnessed by the various measures and statements initiated. Indeed, many efforts have been undertaken to make the Korean system compatible with international requirements. Therefore, numerous agreements and treaties were signed, various international cooperations were established, and specialized bodies were set up in order to support the business environment as well the intellectual property field. South Korea is going to provide further endeavors in order to strengthen and make the intellectual property system more efficient and further international openness is still one of the highest goal of Government. In addition, in order to achieve the above ambitions, the Korean Government has allotted important resources, such as human resources, funds, spending increases, as well as specialized bodies dedicated to training related to intellectual property rights. But, among all the efforts undertaken by South Korea, one of the most important is certainly the wrestling against counterfeit products. Indeed, in just a few years, Government's behaviour has evolved positively and many measures were taken to combat this scourge. All these endeavors have been fruitful to allow South Korea to be removed from the Section 301 priority watch list countries and place Korea on a separate, lower‐level watch list. However counterfeiting is still an issue that Government must consider.
In addition to above, South Korea has established a very comprehensive legal environment allowing companies to protect their Intellectual assets through formal tools such as patenting, trademark, utility models, design, trademarks, copyright, and so on. Moreover, to protect businesses, Korean Governments has also set up specialized courts to settle any dispute that may arise. Further, certain intellectual property rights are protected under the Unfair Competition Prevention and Trade Secrets Protection Act, which main purpose is to avoid and prevent unfair competition such as the misuse of trademarks and trade names, and therefore to avoid trade secrets infringement. However, although the Government has undertaken many reforms in the field of legal framework and has established a comprehensive legal environment, it seems that a lack of transparency and corruption are still a major concern for foreign investors. But despite a relatively moderate level of corruption affecting the country, and as outlined by the Korean Constitution, the independence of the judicial system is guaranteed. However, impartiality of judges is challenged.
Going beyond what is being said and regarding more accurately labor law, companies relying on secrets may conclude confidentiality with employees to keep intellectual property from leaking out of the company. Employees are required not to disclose any confidential information to a third party during the period of employment contract as well as after retirement. Therefore, South Korea offers a comprehensive labor regulation to companies.
Finally, , the final word is that South Korea attempts to provide a "sound environment" to companies of any size and any provenance, which is witnessed by the various endeavors undertaken by the Government.
8.1.2 MESO‐LEVEL (INSTITUTIONAL)
First of all, among all technological field, consideration of intellectual property issues is relevant and seems to be very well understood by both Korean companies and foreign investors, as witnessed by the increasing number of applications (patent, trademark, utility models, designs, etc). But, the most remarkable thing is that the Government has established a very comprehensive institutional network. In fact, the various institutions interact with each other, as well as with other governmental bodies such as Korea Customs Service, Prosecutor Office and the Police for improving the level of IPR protection. At an international level many collaborations were established. To date, South Korea has joined 13 international treaties related to Intellectual Property. Furthermore, to foster an enabling environment, each institution is responsible for very specific tasks and are subject to Korean Intellectual Property Office. In addition, 29 local IP centers were set up nationwide by the Korean Government in order to support the SMEs day‐to‐day activities related to intellectual property rights.
Each regional IP center offers IP consultations, patent information services and educational programs to companies. Moreover, consultants provide advice on how to proceed and how to prepare an effective patent application. In addition, financial supports are granted to SMEs willing to file more patent applications overseas. Going on step further, Korean Intellectual Property Office has set up the International Intellectual Property Training institute in 1987, whose major mission is to provide education on intellectual property, and therefore, to foster IP awareness. Therefore, it is easily understood that Korean Government is providing further endeavors to meet the needs of various businesses.
Moreover, information accessibility and reliability and very well‐done websites provide additional value to the country. Let us remind that information is provided in various languages, such as Korean, English, Chinese, and Japanese. This accessibility improve the extent of information spread. Thus, information provided by the Korean institutional framework is very comprehensive, up to date, widely available and accessible to everyone.
Finally, regarding resources, one of the biggest objectives of Korean Intellectual Property Office is to improve the number of highly educated IP specialists. Indeed, the purpose is to provide company with highly skilled employees. Moreover, financial supports may be granted to SMEs willing to file more patent applications overseas.
SÉMINAIRE DE SYNTHÈSE Aygün Erkaslan
8.1.3 MICRO‐LEVEL (ENTERPRISE)
The first finding concerning the micro‐level reveals a very positive use of IPR protection instruments.
Indeed, the number of patents fillings experienced a positive growth in recent years, which ranks South Korea as being the country with the highest patent fillings per million population worldwide and the highest number of patent fillings per $billion Gross Domestic Product. Therefore, the level of use of IPR protection instruments is undoubtedly remarkable, which witnesses again that businesses have absorbed the importance of protecting their Intellectual Assets. Although this finding is particularly interesting and that Korean authorities have made real endeavours to strengthen the
Indeed, the number of patents fillings experienced a positive growth in recent years, which ranks South Korea as being the country with the highest patent fillings per million population worldwide and the highest number of patent fillings per $billion Gross Domestic Product. Therefore, the level of use of IPR protection instruments is undoubtedly remarkable, which witnesses again that businesses have absorbed the importance of protecting their Intellectual Assets. Although this finding is particularly interesting and that Korean authorities have made real endeavours to strengthen the