TY - JOUR
T1 - Measuring technology complementarity between enterprises with an hlda topic model
AU - Wang, Xuefeng
AU - Qiao, Yali
AU - Hou, Yujia
AU - Zhang, Shuo
AU - Han, Xiaotong
N1 - Publisher Copyright:
© 2021 Institute of Electrical and Electronics Engineers Inc.. All rights reserved.
PY - 2021/10/1
Y1 - 2021/10/1
N2 - When considering a joint venture or merger, it is essential for firms to explore innovators with complementary technology to compensate for any internal limitations inR&Dresources. In this article, we provide a framework for exploring the technology complementarity between enterprises in a quantitative manner based on text-mining patent data. A hierarchical latent Dirichlet allocation topic model identifies the technology topics hidden in patent documents along with the hierarchical structure of those topics. The technology complementarity between broad classes of technology and their subclassifications across enterprises is then measured with an improved formulation. An empirical study on three-dimensional printing illustrates the validity, reliability, and practicality of this method and the measurement formula used, endorsed by technical experts. This method can be used to identify R&D opportunities, to find appropriate acquisition targets and potential collaborators, and to support managerial decision-making with quantified information on technology complementarity.
AB - When considering a joint venture or merger, it is essential for firms to explore innovators with complementary technology to compensate for any internal limitations inR&Dresources. In this article, we provide a framework for exploring the technology complementarity between enterprises in a quantitative manner based on text-mining patent data. A hierarchical latent Dirichlet allocation topic model identifies the technology topics hidden in patent documents along with the hierarchical structure of those topics. The technology complementarity between broad classes of technology and their subclassifications across enterprises is then measured with an improved formulation. An empirical study on three-dimensional printing illustrates the validity, reliability, and practicality of this method and the measurement formula used, endorsed by technical experts. This method can be used to identify R&D opportunities, to find appropriate acquisition targets and potential collaborators, and to support managerial decision-making with quantified information on technology complementarity.
KW - Hierarchical latent Dirichlet allocation (hLDA) topic model
KW - Quantitative
KW - Technology complementarity
KW - Text mining
KW - Three-dimensional (3-D) printing technology
UR - http://www.scopus.com/inward/record.url?scp=85110533789&partnerID=8YFLogxK
U2 - 10.1109/TEM.2019.2958113
DO - 10.1109/TEM.2019.2958113
M3 - Article
AN - SCOPUS:85110533789
SN - 0018-9391
VL - 68
SP - 1309
EP - 1320
JO - IEEE Transactions on Engineering Management
JF - IEEE Transactions on Engineering Management
IS - 5
M1 - 08937531
ER -