Wireless telecommunication business has network externalities: in such a field companies can grow their business by providing cutting-edge technology continuously not only in the transmitting side but also in the receiving side. Historically Marconi of the UK and Telefunken of Germany had collaborated to expand wireless telecommunication business, although they had competed furiously on the other hand. In the phase of collaboration, they jointly coordinated research and development and global technology flows. The aim of this paper is to clarify their collaborated global wireless technology transfer by analyzing patent management and its practices.
This paper will contribute to discussions on the relationship between foreign direct investment (FDI) and intellectual property rights (IPR). Although Sáiz and Castro (2017) analyzed long-term links between FDI and IPR in Spain, multinational enterprises did not only get patent for one country, but applied for patents to multiple countries, made direct investments there, and networked them globally. In particular, companies engaged in wireless telecommunication business with network externalities had applied patents globally, transferred technology globally, and made FDI globally. By analyzing the wireless telecommunication companies’ case, it could become clear that the patent management promoted global technology transfer and that the patent management and FDI were closely related. It could be also clear that Marconi and Telefunken's collaboration was based on joint patent management, facilitating R&D and technology transfer of both companies.
The primary sources are the patent ledgers and registers of Marconi of the Marconi Archives which held by Oxford Bodleian Library.
Patricio Sáiz and Rafael Castro, “Foreign Direct Investment and Intellectual Property Rights: International Intangible Assets in Spain over the Long Term”, Enterprises & Society 18, Issue 4 (2017):846-892.