Patent citations as a method for analysing industrial convergence

Despite the fact that convergence of technologies is seen as a major driver of change in many industry settings, the phenomenon has remained largely unexplored in the academic management field. The citations data of patents have been used to get an idea of the stage of industry emergence in the context of the paper and electronics industry. Patent data was collected from the 87 main players operating in the RFID value chain. The analysed firms had altogether 464,225 patent applications and over 3.3 million citations in the period 1978-2006. We distinguish self citations from external citations, and further divide external citations into two groups: within the industry and beyond the industry citations. Self citations typically imply a more competitive position in that field (capability), external citations may suggests that the citing firm is entering a technological competition within (competition) or beyond (diversification) industry. The recognized trends of the growing overlaps of the technological fields show indications for convergence between industries. So for traditional electronics industry player´s strategically important knowledge is pointed out for their future competitive area. This type of patent analysis helps to recognise trajectory changes early in the industry and helps companies to take strategic decisions accordingly.