Profiting from Technological Innovation: Implications for Integration, Collaboration, Licensing, and Public Policy
Innovating firms often fail to obtain significant returns on their investment, giving up the profits to customers, imitators, or other industry participants. “Profiting from Technological Innovation: Implications for Integration, Collaboration, Licensing, and Public Policy”, analyzes why this occurs, and gives recommendations as to how an innovator should proceed and strategize. Three building blocks that comprise the equation for success are explained, specifically regime of appropriability, dominant design paradigm, and complementary assets. Decision tables and a flowchart are presented for complementary asset integration versus contract.
QUESTIONS
What is a possible advantage of a smaller less integrated company making a contract with an established company?
Why is it hard for an innovator to form strategic partnering or attract venture capital?
What is an example of opportunistic abuse on the part of the innovator and on the part of the venture capitalist?
When is strategic partnering ideal for the innovator?