Snakes and ladders: A patent analysis of Ericsson, Motorola and Nokia in the wireless communications industry, 1980-2000

Abstract

This paper uses USPTO patent data to analyze knowledge flows within and across the three firms that successively led the wireless communication industry over the past three decades (Motorola, Ericsson and Nokia). We show that as a follower attempts to catch up with the leader, it relies heavily on the leader for knowledge. Only when the follower gets close to the leader does it significantly reduce its dependence on the latter, and build its independent technological prowess. Our analysis also identifies two specific weaknesses of Motorola's technology strategy which may have partly led to Motorola's loss of its leadership in the wireless communication industry: 1) Motorola was too inward-looking in developing its technology, and 2) ironically, Motorola was not inward-looking enough in some ways: many of its most important patents were cited more heavily by Ericsson than by itself. © 2004 IEEE.