Organizational Innovations of the 20th Century as High Tech of the 21st: Evidence From Patent Data

66 Pages Posted: 27 Apr 2021 Last revised: 6 May 2022

See all articles by Valery Yakubovich

Valery Yakubovich

ESSEC Business School; University of Pennsylvania

Shuping Wu

INSEAD

Date Written: May 06, 2022

Abstract

Organization theorists have long claimed that organizational innovations are nontechnological, in part, because they are unpatentable. The claim rests on the assumption that organizational innovations are abstract ideas embodied in persons and contexts rather than in context-free practical tools. However, over the last three decades organizational knowledge has been increasingly embodied in digital tools which, in principle, can be patented. To provide the first empirical evidence regarding the patentability of organizational innovations, we trained two machine learning algorithms to identify a population of 205,434 patent applications for organizational technologies (OrgTech) and, among them, 141,285 applications that use organizational innovations accumulated over the 20th century. Our event history analysis of the probability of patenting an OrgTech invention shows that ideas from organizational innovations decrease the probability of patent allowance unless they describe a practical tool. We conclude that the present-day digital transformation places organizational innovations in the realm of high tech and turns the debate about organizational technologies into the challenge of designing practical organizational tools that embody big ideas about organizing. We outline an agenda for patent-based research on OrgTech as an emerging phenomenon.

Keywords: organizational innovation, organizational technology, high tech, patents, machine learning

JEL Classification: M15, O32, O34

Suggested Citation

Yakubovich, Valery and Yakubovich, Valery and Wu, Shuping, Organizational Innovations of the 20th Century as High Tech of the 21st: Evidence From Patent Data (May 06, 2022). Available at SSRN: https://ssrn.com/abstract=3834400 or http://dx.doi.org/10.2139/ssrn.3834400

Valery Yakubovich (Contact Author)

ESSEC Business School ( email )

France

University of Pennsylvania ( email )

Philadelphia, PA 19104
United States

Shuping Wu

INSEAD ( email )

Boulevard de Constance
77305 Fontainebleau Cedex
France

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