OrgTech: Evidence of organizational innovations in patent data

Organization theorists have long claimed that organizational innovations are nontechnological, in part, because they are unpatentable. We show that the rise of organizational software (OrgSoft) opens opportunities for embodying organizational knowledge in digital tools and thus turns organizational innovations (OrgInn) into technological ones (TechInn) that are patentable. Applying machine learning algorithms to US patent data, we identify 205,434 US patent applications for OrgSoft submitted between 1971 and 2020. Among them, 141,285 applications or 68.8 % represent OrgInn. Our analysis shows how these innovations contribute to OrgSoft's patenting and thus recognition as TechInn. Specifically, organizational innovations enhance novelty and nonobviousness of the invention but raise concerns about the inventor's ability to embody these ideas in practical tools transferable across organizational contexts. We conclude that the present-day digital transformation turns the general debate about organizational innovations being technologies into the specific challenge of designing practical tools that embody novel ideas about organizing and make them applicable across a variety of contexts. • Purpose : This study investigates the emergence of organizational innovations (OrgInn) as technological innovations (TechInn) by analyzing their patentability. It addresses the longstanding assumption in organizational theory that organizational innovations are nontechnological due to their unpatentability, arguing that advances in organizational software (OrgSoft) now make it possible to patent organizational innovations as they can be embodied in digital tools. • Methods : The study employs machine learning algorithms to examine U.S. patent data from 2001 to 2020, identifying 205,434 OrgSoft patent applications, of which 141,285 (68.8 %) include OrgInn. Using logistic regression models, the authors explore how these patents meet standard patent criteria, such as novelty, nonobviousness, and the practical challenges of embodying organizational knowledge in transferable tools. • Results : The findings reveal that organizational innovations enhance novelty and nonobviousness in patent applications but struggle with criteria like specification and eligible subject matter. Specifically, organizational innovations that lack practical, digital tools face challenges in meeting patent requirements. However, OrgInn patents with associated digital tools have a higher likelihood of approval, indicating that practical embodiment is crucial for patentability. • Conclusion : This research highlights the transformative impact of digital tools on the recognition of organizational innovations as patentable technologies. It suggests that organizational innovators should focus on creating practical, transferable tools to achieve technological status, supporting a broader agenda for patent-based research on organizational technologies in the digital era.