Mango Electronics Inc.: Innovation in Consumer Electronics
a. What is the utilization of Mango's development facilities? [9.6]
b. How long does it take an average technology to go from filing a patent to being launched in the market as a commercial product? [9.6]
c. How many years of patent life are left for an average product launched by Mango Electronics? [9.6]
a. The utilization of Mango's development facilities is 4.
b. It takes 35 months for a technology to go from filing a patent to being launched in the market as a commercial product.
c. An average product launched by Mango Electronics has approximately 17.08 years of patent life remaining.
a. Calculating Mango's Development Facilities Utilization
To calculate the utilization of Mango's development facilities, we need to determine the average time it takes for a product to be developed and compare it to the average time between patent filings.
The average time between patent filings is given as 7 months, with a standard deviation of 7 months. Let's denote this as T1.
The average development process duration is given as 28 months, with a standard deviation of 56 months. Let's denote this as T2.
Utilization can be calculated by dividing the average time for product development (T2) by the average time between patent filings (T1):
Utilization = T2 / T1
Substituting the given values,
Utilization = 28 months / 7 months = 4
b. Determining Time for Technology Launch
To calculate how long it takes an average technology to go from filing a patent to being launched as a commercial product, we consider the total time from filing a patent to completing the development process.
The total time is the sum of the average time between patent filings (T1) and the average development process duration (T2):
Total time = T1 + T2
Substituting the given values,
Total time = 7 months + 28 months = 35 months
c. Estimating Patent Life for Mango's Products
The number of years of patent life left for an average product launched by Mango Electronics can be calculated by subtracting the time it takes for a technology to go from filing a patent to being launched (35 months) from the total patent life of 20 years.
Years of patent life left = (20 years * 12 months) - 35 months
Years of patent life left = 240 months - 35 months = 205 months
Converting this to years,
Years of patent life left = 205 months / 12 months per year ≈ 17.08 years