[ESSEC Knowledge] by Valery Yakubovich - Associate Professor of Management at ESSEC Business School and Senior Fellow at the Wharton Center for Human Resources.

Abstract

In a recent study, Valery Yakubovich and Shuping Wu from ESSEC Business School explored the patentability of organizational innovations and the emergence of organizational technology (OrgTech) as a distinct high-tech domain. They identified 114 organizational innovations from the 20th and early 21st centuries, such as scientific management and lean production. These innovations were typically considered non-patentable as they were seen as abstract concepts without practical tools. However, the study found that a significant number of patent applications were submitted for organizational innovations, particularly by digital transformation leaders like Microsoft, IBM, and SAP.

The researchers also discovered that applications for organizational innovations were less successful in obtaining patents compared to applications for concrete organizational tools. Inventions classified as computational, rather than organizational, had higher success rates. The study suggested that to succeed in patenting organizational innovations, applicants should focus on presenting practical tools rather than abstract concepts.

The study highlighted the potential of OrgTech but also pointed out challenges, particularly related to data privacy in the context of big data and data-driven innovation. Patentable OrgTech could provide a platform for collaboration between academia and industry, facilitating the development of practical tools for innovative organizational practices. This research challenges the traditional assumption that organizational innovations cannot be patented, indicating that OrgTech is a promising and evolving field that deserves further attention from both researchers and practitioners.

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