This document discusses factors that determine whether innovating firms or followers benefit more from innovations. It provides the example of EMI, which developed the first CAT scanner but lost market leadership within 6 years as followers modified and improved the design. The key factors discussed are the appropriability regime, the emergence of a dominant design, and ownership of complementary assets needed for commercialization. In a weak appropriability regime, innovators must closely monitor the market and be prepared to modify their design before a dominant one emerges to maintain competitive advantage over followers.
Profiting from technological innovation pptStudent
In this presentation i tried my level best to upload a detail presentation on (Profiting from Technological Innovation) by David J. Teece
June, 1986
Educational purposes only
Profiting from innovation in the digital economy teece 2018James Cracknell
David Teece's 1986 seminal work' Profiting from Innovation' set out a framework highly relevant to trhe industrial age but not so specific to address the digital landscape of today. The 2018 version has just done that. These are notes and musings from reading the paper, extracting valuable insight into IP and appropriations that protect. IOt also addresses the issues of how we reward the inventor in a permiable society,
The document discusses the concepts of innovation types including incremental, radical, component and architectural innovation. It describes how architectural innovation involves reconfiguring how components are linked together while sustaining core competencies. The document also outlines the technology life cycle from emergence of new technologies and periods of experimentation to the establishment of dominant designs and routines. Managerial implications are discussed around anticipating disruptions, distinguishing between incumbents and new entrants, and configurations of alliances.
The document discusses Michael Porter's generic strategies model which identifies three strategies for gaining competitive advantage - cost leadership, differentiation, and focus. It provides details and examples of each strategy. Cost leadership involves producing standardized products on a large scale at low cost. Differentiation focuses on making the product unique through features, quality, design or service. Focus involves targeting a narrow market segment and achieving either cost advantage or differentiation within that segment. The risks of each strategy are also outlined. The document then provides examples of Dell's successful implementation of virtual integration and targeting of customer segments to achieve cost leadership.
The document discusses the concepts of disruptive innovation and how industries are resistant to change. It provides examples throughout history where new technologies were dismissed but later disrupted industries. The document introduces the concepts of sustaining versus disruptive innovation and how disruptors can take market share by targeting customer needs in a new way. Finally, it discusses how to identify disruption opportunities using tools like the strategy canvas and blue ocean strategy, noting that the best ideas for disruption often seem stupid at first.
The document discusses four global strategies for companies operating internationally: global, transnational, export, and multi-domestic strategies. A global strategy treats the world as a single market with standardized products and advertising, while an export strategy focuses domestically but exports some products. A transnational strategy balances global efficiencies with local responsiveness through customization. A multi-domestic strategy handles each country's market independently by adapting products and advertising to local needs and tastes.
This document discusses strategies for competing in different types of industries. It describes fragmented industries as having many small companies and low barriers to entry. Strategies for fragmented industries include franchising and mergers. Embryonic and growth industries are in early stages of development and strategies depend on attracting different customer groups. Mature industries are consolidated with interdependent companies trying to manage competition. Declining industries have shrinking demand, so strategies include focusing on niche markets or harvesting cash flow. The nature of an industry and a company's capabilities determine the best strategic options.
Industry analysis is useful for understanding a company's business environment, identifying investment opportunities, and performing portfolio attribution. Key aspects of industry analysis include understanding classification systems, constructing peer groups, analyzing competitive forces and barriers to entry, evaluating the impact of life cycle stage and macroeconomic factors, and modeling financial performance. Company analysis examines demand, costs, pricing, financial ratios, and strategies to achieve competitive advantages in cost leadership or differentiation.
Profiting from technological innovation pptStudent
In this presentation i tried my level best to upload a detail presentation on (Profiting from Technological Innovation) by David J. Teece
June, 1986
Educational purposes only
Profiting from innovation in the digital economy teece 2018James Cracknell
David Teece's 1986 seminal work' Profiting from Innovation' set out a framework highly relevant to trhe industrial age but not so specific to address the digital landscape of today. The 2018 version has just done that. These are notes and musings from reading the paper, extracting valuable insight into IP and appropriations that protect. IOt also addresses the issues of how we reward the inventor in a permiable society,
The document discusses the concepts of innovation types including incremental, radical, component and architectural innovation. It describes how architectural innovation involves reconfiguring how components are linked together while sustaining core competencies. The document also outlines the technology life cycle from emergence of new technologies and periods of experimentation to the establishment of dominant designs and routines. Managerial implications are discussed around anticipating disruptions, distinguishing between incumbents and new entrants, and configurations of alliances.
The document discusses Michael Porter's generic strategies model which identifies three strategies for gaining competitive advantage - cost leadership, differentiation, and focus. It provides details and examples of each strategy. Cost leadership involves producing standardized products on a large scale at low cost. Differentiation focuses on making the product unique through features, quality, design or service. Focus involves targeting a narrow market segment and achieving either cost advantage or differentiation within that segment. The risks of each strategy are also outlined. The document then provides examples of Dell's successful implementation of virtual integration and targeting of customer segments to achieve cost leadership.
The document discusses the concepts of disruptive innovation and how industries are resistant to change. It provides examples throughout history where new technologies were dismissed but later disrupted industries. The document introduces the concepts of sustaining versus disruptive innovation and how disruptors can take market share by targeting customer needs in a new way. Finally, it discusses how to identify disruption opportunities using tools like the strategy canvas and blue ocean strategy, noting that the best ideas for disruption often seem stupid at first.
The document discusses four global strategies for companies operating internationally: global, transnational, export, and multi-domestic strategies. A global strategy treats the world as a single market with standardized products and advertising, while an export strategy focuses domestically but exports some products. A transnational strategy balances global efficiencies with local responsiveness through customization. A multi-domestic strategy handles each country's market independently by adapting products and advertising to local needs and tastes.
This document discusses strategies for competing in different types of industries. It describes fragmented industries as having many small companies and low barriers to entry. Strategies for fragmented industries include franchising and mergers. Embryonic and growth industries are in early stages of development and strategies depend on attracting different customer groups. Mature industries are consolidated with interdependent companies trying to manage competition. Declining industries have shrinking demand, so strategies include focusing on niche markets or harvesting cash flow. The nature of an industry and a company's capabilities determine the best strategic options.
Industry analysis is useful for understanding a company's business environment, identifying investment opportunities, and performing portfolio attribution. Key aspects of industry analysis include understanding classification systems, constructing peer groups, analyzing competitive forces and barriers to entry, evaluating the impact of life cycle stage and macroeconomic factors, and modeling financial performance. Company analysis examines demand, costs, pricing, financial ratios, and strategies to achieve competitive advantages in cost leadership or differentiation.
- EgyptAir is Egypt's national airline based in Cairo. It started in 1932 with two planes carrying passengers between Cairo and Alexandria.
- Currently, EgyptAir has 73 aircraft serving 85 destinations in 60 countries with over 1200 weekly flights.
- EgyptAir aims to expand its fleet to 223 aircraft over the next 10 years through purchasing new planes annually and developing its subsidiary airlines.
This document provides an introduction to technology commercialization. It discusses how the Innovations Group at the University of Toronto helps researchers commercialize ideas by assessing commercial potential, obtaining intellectual property protection, providing funding and business development support, and licensing or starting new companies. It then summarizes key factors to consider in evaluating a technology's commercial potential, including intellectual property, the technology itself, market opportunities, and the capabilities of the research team. Finally, it discusses options for commercializing a technology through licensing or starting a new company, and considerations for obtaining early-stage funding.
This document provides an overview of innovation systems and approaches. It defines key concepts like innovation, systems of innovation, and the system of innovation approach. It describes the main actors and agents in innovation systems as well as typologies of innovation. The strengths and weaknesses of the systems of innovation approach are outlined. Systems of innovation for development are discussed as a variant for developing countries. Examples of national innovation systems from Finland, China, and Indonesia are briefly described. Measures for innovation policy and frameworks for analyzing innovation performance are also mentioned.
The document outlines 10 organizational characteristics that facilitate the innovation process: 1) a growth orientation and interest in innovation, 2) a culture that recognizes the value of innovation, 3) vigilance in monitoring opportunities and threats, 4) a commitment to technology and investing in R&D, 5) an acceptance of risks, 6) cross-functional cooperation, 7) being receptive to external technologies, 8) providing space for creativity, 9) having an innovation strategy aligned with skills and markets, and 10) coordinating a wide range of skills.
The slide is prepared for Economics of Strategy class in Prasetiya Mulya Business School. In week 3, we discuss about horizontal boundaries of the firm which define how much of the total product market the firm serves (scale) and what variety of related products the firm offers (scope). This concept is important for firms to formulate strategy.
The document outlines the Goldsmith Technology Commercialization Model, which provides 18 steps across 6 stages to commercialize new technologies. The Concept Phase involves investigating the technical concept, market needs, and venture potential. The Development Phase assesses technical and market feasibility. It involves building a working model, conducting a market study, and evaluating economic feasibility. The Growth Phase focuses on production, sales, business growth, and achieving maturity in the market.
There are two types of reengineering: technology enabled and clean slate. Technology enabled reengineering uses existing technology like ERP systems to guide and structure the process. This reduces time and cost but limits evolution. Clean slate reengineering starts from scratch without predefined artifacts for complete evolution but has high costs and risks since the design may not be feasible. The best approach depends on factors like firm size, budget, timelines, and competitiveness.
This document discusses the importance of perpetual reinvention and open innovation for companies. It notes that the average lifespan of S&P 500 companies has dropped significantly from 60 years in the 1950s to less than 20 years today. It then introduces Telefonica's global open innovation network called Wayra, which connects startups, investors, corporations and more through various innovation hubs, funds, and partnerships. The document outlines Telefonica's focus on scouting emerging technologies and helping startups scale globally to bring innovative products and services to its business units.
The document outlines 21 ways to innovate in the automotive industry. It discusses various types of innovation including incremental, process, red ocean, service, business model, sustainable, frugal, blue ocean, and radical innovation. It also covers open innovation through crowd sourcing, experience innovation, social innovation, supply chain innovation, and getting innovation inspiration from the past. The document is intended to provide inspiration for analyzing opportunities for innovation in the automotive sector through an engaging presentation.
1. Innovation is important for companies to survive as competitors will develop new products that change the competitive landscape. Businesses must adapt and evolve.
2. Innovation has been studied across disciplines like economics, business management, and organizational behavior to understand how science and technology impact economic growth. Studies examined knowledge generation, development of products/processes, and commercialization.
3. The innovation process involves an economic perspective, business strategy perspective, and examining internal organizational activities and individuals who are key to defining problems and having ideas that lead to innovations.
This document provides an overview of Porter's generic strategies including cost leadership, differentiation, and focus strategies. It discusses Michael Porter, the creator of the generic strategies framework, and then defines each generic strategy and provides examples. For each strategy, it outlines the internal strengths companies need to succeed with that strategy and potential risks. It also discusses how Porter's five forces of competition, including rivalry, threats of substitution, buyer power, supplier power, and barriers to entry, relate to the different generic strategies.
This document discusses innovation management. It defines innovation as a new idea that improves products, processes or services. Innovation management involves guiding new ideas through development, protection, enforcement, and implementation. Key aspects of innovation management include identifying sources of innovation, different types of innovation, models of the innovation process, organizational structures that support innovation, and difficulties in achieving successful innovation management.
DESK RESEARCH ON STP AND CHANNEL DESIGN OF LG ELECTRONICSSHAHBAAZ AHMED
This document summarizes LG's distribution channels in India. LG uses both direct and indirect distribution channels. The direct channel includes LG-owned stores while the indirect channel utilizes distributors and retailers. LG has a regional distribution model with 46 branch offices and 110 area offices. It aims to focus on innovation and rank among the top 3 electronics firms globally. Samsung is LG's main competitor in India, targeting similar audiences and product categories.
Boeing's development of the Sonic Cruiser project in the early 2000s was a failure that cost the company its leadership position in the commercial aircraft market. The Sonic Cruiser, which would have carried 225 passengers at near supersonic speeds, was the wrong aircraft developed at the wrong time as the 9/11 attacks plunged the aviation industry into an economic downturn. Despite meetings with customers over 4-5 years, Boeing struggled to decide whether the Sonic Cruiser or a more efficient aircraft was the right path. Rival Airbus capitalized on Boeing's indecision and ultimately Boeing canceled the Sonic Cruiser project in 2003, acknowledging it needed more research.
The document summarizes various institutions that provide financial and non-financial assistance to small scale enterprises in India. It discusses state financial corporations, SIDBI, commercial banks, KSIIDC, KSFC, IFCI and others that provide loans, subsidies and other financial supports. It also outlines institutions like DIC, SISI, EDI, SIDO that aid with non-financial services including training, consultancy, marketing and policy implementation. Microfinance organizations and self-help groups are also mentioned as alternative sources of funding for small businesses.
1. The document discusses various pricing objectives, methods, strategies, and considerations for setting prices. The key objectives discussed are survival pricing, maximizing current profits, maximizing market share, market skimming, and achieving product quality leadership.
2. Multiple factors influence pricing decisions, including costs, customer demand, competition, and the company's pricing policies. Different pricing methods are used in different market situations, like cost-plus pricing, target return pricing, and going rate pricing.
3. Adopting final prices requires considering impacts on other marketing activities, distribution channels, competitors, and regulations. A pricing structure is generally used that accounts for various customer segments, purchase conditions, and locations.
The presentation is about Technology Strategy - Pattern of Innovation in Chapter-3, schilling (text Book). Was done by my group mates and reflects some topics with examples.
A formal innovation strategy can help firms achieve success in new product development. This presentation presents Merle C Crawford's (1980) four innovation strategies and mentions some of the myths associated with each. For more on innovation and innovation management in Asia and beyond, check out http://www.brokenbulbs.com
Thanks a lot!
The document discusses SOLAIR AUTOMOTIVE, a modified Stirling engine car air conditioning compressor that uses exhaust heat and refrigerant gas as the working fluid. It would be a joint venture between three major German automakers. The compressor would take the AC load off the car engine, improving fuel economy. It has the potential to equip over 70 million new cars annually sold globally. The technology is based on proven Stirling engines and is protected by an existing patent.
TheKVM is a technology consulting firm that performs strategic technology scouting, product development, business development, and market entry activities. It has partnerships with research organizations and startups that give it access to over 7500 innovations. Some of its successfully commercialized technologies include a nano-polymer additive, an emission-reducing combustion catalyst, and a UV-resistant coating. TheKVM's services include helping clients develop new products, raise funds, enter new markets, and stay ahead of competitors through technology acquisitions. It differs from other consultancies by directly commercializing new technologies to generate revenue for clients.
- EgyptAir is Egypt's national airline based in Cairo. It started in 1932 with two planes carrying passengers between Cairo and Alexandria.
- Currently, EgyptAir has 73 aircraft serving 85 destinations in 60 countries with over 1200 weekly flights.
- EgyptAir aims to expand its fleet to 223 aircraft over the next 10 years through purchasing new planes annually and developing its subsidiary airlines.
This document provides an introduction to technology commercialization. It discusses how the Innovations Group at the University of Toronto helps researchers commercialize ideas by assessing commercial potential, obtaining intellectual property protection, providing funding and business development support, and licensing or starting new companies. It then summarizes key factors to consider in evaluating a technology's commercial potential, including intellectual property, the technology itself, market opportunities, and the capabilities of the research team. Finally, it discusses options for commercializing a technology through licensing or starting a new company, and considerations for obtaining early-stage funding.
This document provides an overview of innovation systems and approaches. It defines key concepts like innovation, systems of innovation, and the system of innovation approach. It describes the main actors and agents in innovation systems as well as typologies of innovation. The strengths and weaknesses of the systems of innovation approach are outlined. Systems of innovation for development are discussed as a variant for developing countries. Examples of national innovation systems from Finland, China, and Indonesia are briefly described. Measures for innovation policy and frameworks for analyzing innovation performance are also mentioned.
The document outlines 10 organizational characteristics that facilitate the innovation process: 1) a growth orientation and interest in innovation, 2) a culture that recognizes the value of innovation, 3) vigilance in monitoring opportunities and threats, 4) a commitment to technology and investing in R&D, 5) an acceptance of risks, 6) cross-functional cooperation, 7) being receptive to external technologies, 8) providing space for creativity, 9) having an innovation strategy aligned with skills and markets, and 10) coordinating a wide range of skills.
The slide is prepared for Economics of Strategy class in Prasetiya Mulya Business School. In week 3, we discuss about horizontal boundaries of the firm which define how much of the total product market the firm serves (scale) and what variety of related products the firm offers (scope). This concept is important for firms to formulate strategy.
The document outlines the Goldsmith Technology Commercialization Model, which provides 18 steps across 6 stages to commercialize new technologies. The Concept Phase involves investigating the technical concept, market needs, and venture potential. The Development Phase assesses technical and market feasibility. It involves building a working model, conducting a market study, and evaluating economic feasibility. The Growth Phase focuses on production, sales, business growth, and achieving maturity in the market.
There are two types of reengineering: technology enabled and clean slate. Technology enabled reengineering uses existing technology like ERP systems to guide and structure the process. This reduces time and cost but limits evolution. Clean slate reengineering starts from scratch without predefined artifacts for complete evolution but has high costs and risks since the design may not be feasible. The best approach depends on factors like firm size, budget, timelines, and competitiveness.
This document discusses the importance of perpetual reinvention and open innovation for companies. It notes that the average lifespan of S&P 500 companies has dropped significantly from 60 years in the 1950s to less than 20 years today. It then introduces Telefonica's global open innovation network called Wayra, which connects startups, investors, corporations and more through various innovation hubs, funds, and partnerships. The document outlines Telefonica's focus on scouting emerging technologies and helping startups scale globally to bring innovative products and services to its business units.
The document outlines 21 ways to innovate in the automotive industry. It discusses various types of innovation including incremental, process, red ocean, service, business model, sustainable, frugal, blue ocean, and radical innovation. It also covers open innovation through crowd sourcing, experience innovation, social innovation, supply chain innovation, and getting innovation inspiration from the past. The document is intended to provide inspiration for analyzing opportunities for innovation in the automotive sector through an engaging presentation.
1. Innovation is important for companies to survive as competitors will develop new products that change the competitive landscape. Businesses must adapt and evolve.
2. Innovation has been studied across disciplines like economics, business management, and organizational behavior to understand how science and technology impact economic growth. Studies examined knowledge generation, development of products/processes, and commercialization.
3. The innovation process involves an economic perspective, business strategy perspective, and examining internal organizational activities and individuals who are key to defining problems and having ideas that lead to innovations.
This document provides an overview of Porter's generic strategies including cost leadership, differentiation, and focus strategies. It discusses Michael Porter, the creator of the generic strategies framework, and then defines each generic strategy and provides examples. For each strategy, it outlines the internal strengths companies need to succeed with that strategy and potential risks. It also discusses how Porter's five forces of competition, including rivalry, threats of substitution, buyer power, supplier power, and barriers to entry, relate to the different generic strategies.
This document discusses innovation management. It defines innovation as a new idea that improves products, processes or services. Innovation management involves guiding new ideas through development, protection, enforcement, and implementation. Key aspects of innovation management include identifying sources of innovation, different types of innovation, models of the innovation process, organizational structures that support innovation, and difficulties in achieving successful innovation management.
DESK RESEARCH ON STP AND CHANNEL DESIGN OF LG ELECTRONICSSHAHBAAZ AHMED
This document summarizes LG's distribution channels in India. LG uses both direct and indirect distribution channels. The direct channel includes LG-owned stores while the indirect channel utilizes distributors and retailers. LG has a regional distribution model with 46 branch offices and 110 area offices. It aims to focus on innovation and rank among the top 3 electronics firms globally. Samsung is LG's main competitor in India, targeting similar audiences and product categories.
Boeing's development of the Sonic Cruiser project in the early 2000s was a failure that cost the company its leadership position in the commercial aircraft market. The Sonic Cruiser, which would have carried 225 passengers at near supersonic speeds, was the wrong aircraft developed at the wrong time as the 9/11 attacks plunged the aviation industry into an economic downturn. Despite meetings with customers over 4-5 years, Boeing struggled to decide whether the Sonic Cruiser or a more efficient aircraft was the right path. Rival Airbus capitalized on Boeing's indecision and ultimately Boeing canceled the Sonic Cruiser project in 2003, acknowledging it needed more research.
The document summarizes various institutions that provide financial and non-financial assistance to small scale enterprises in India. It discusses state financial corporations, SIDBI, commercial banks, KSIIDC, KSFC, IFCI and others that provide loans, subsidies and other financial supports. It also outlines institutions like DIC, SISI, EDI, SIDO that aid with non-financial services including training, consultancy, marketing and policy implementation. Microfinance organizations and self-help groups are also mentioned as alternative sources of funding for small businesses.
1. The document discusses various pricing objectives, methods, strategies, and considerations for setting prices. The key objectives discussed are survival pricing, maximizing current profits, maximizing market share, market skimming, and achieving product quality leadership.
2. Multiple factors influence pricing decisions, including costs, customer demand, competition, and the company's pricing policies. Different pricing methods are used in different market situations, like cost-plus pricing, target return pricing, and going rate pricing.
3. Adopting final prices requires considering impacts on other marketing activities, distribution channels, competitors, and regulations. A pricing structure is generally used that accounts for various customer segments, purchase conditions, and locations.
The presentation is about Technology Strategy - Pattern of Innovation in Chapter-3, schilling (text Book). Was done by my group mates and reflects some topics with examples.
A formal innovation strategy can help firms achieve success in new product development. This presentation presents Merle C Crawford's (1980) four innovation strategies and mentions some of the myths associated with each. For more on innovation and innovation management in Asia and beyond, check out http://www.brokenbulbs.com
Thanks a lot!
The document discusses SOLAIR AUTOMOTIVE, a modified Stirling engine car air conditioning compressor that uses exhaust heat and refrigerant gas as the working fluid. It would be a joint venture between three major German automakers. The compressor would take the AC load off the car engine, improving fuel economy. It has the potential to equip over 70 million new cars annually sold globally. The technology is based on proven Stirling engines and is protected by an existing patent.
TheKVM is a technology consulting firm that performs strategic technology scouting, product development, business development, and market entry activities. It has partnerships with research organizations and startups that give it access to over 7500 innovations. Some of its successfully commercialized technologies include a nano-polymer additive, an emission-reducing combustion catalyst, and a UV-resistant coating. TheKVM's services include helping clients develop new products, raise funds, enter new markets, and stay ahead of competitors through technology acquisitions. It differs from other consultancies by directly commercializing new technologies to generate revenue for clients.
Technological innovation is now a key driver of competition for many firms. The document discusses several chapters about the importance and sources of innovation. Chapter 1 notes that innovation fosters economic and social benefits but may also create negatives. Chapter 2 outlines various sources of innovation, including individual inventors, users, research collaborations, and government efforts. Chapter 3 describes different types of innovation and typical patterns of technological change and adoption over time.
Reference : Schilling, Melissa A. 2017. Strategic Management Of Technological Innovation. New York : McGraw-Hill Education.
http://sif.uin-suska.ac.id/
http://uin-suska.ac.id/
There are several barriers that can prevent firms from entering or leaving markets. Barriers to entry include economies of scale, brand loyalty, control of important technologies, expertise and reputation. Strategic entry deterrence by existing firms includes hostile takeovers, product differentiation, capacity expansions, and predatory pricing. Patents provide monopoly power but can also stifle competition. Innovation is both a barrier, through property rights, and an enabler, by reducing barriers. Process innovation lowers costs. Established firms have cost advantages from learning, integration, customer retention, and monopsony power. Legal barriers include licenses, patents, franchises, and import controls.
This document discusses strategies for managing technology and innovation, specifically regarding customization, speed, knowhow, and time pacing. It provides examples of how companies like Toyota, Dell, and Motorola quickly customize and deliver products to customers. It also discusses how standardization strategies can enable customization through approaches like part, process, and product standardization. The development of the video cassette recorder industry is presented as a case study showing the stages of competition for industry foresight, shortening migration paths, and market position.
The document discusses monetizing patents and identifies characteristics of successful monetized patents based on case studies. It provides the TiVo patent as a case study, which was monetized through licensing and litigation settlements totaling nearly $1 billion. The monetizing DNA of the TiVo patent includes solving an important technological problem, providing unique customer value, being integrated into platforms, and having strong legal protections against invalidation challenges.
Chapter 3 types and patterns of innovationMuhammad Anang
The path a technology follows through time is termed its technology trajectory. Technology trajectories are most often used to represent the technology’s rate of performance improvement or its rate of adoption in the marketplace.
This document summarizes a project involving replacing a legacy ERP system with SAP and either using internal resources or outsourcing parts of the project. Key lessons included clarifying roles and responsibilities to avoid issues, taking a phased approach to implementation to control risks, and ensuring adequate resources and budgets were allocated. Outsourcing parts of large IT projects can generate new business opportunities but also risks if not properly managed.
This document discusses how open source communities can effectively do standardization. It addresses some challenges open source communities face in standardization, including unclear customer requirements, fast innovation cycles misaligned with industry cadence, and differences between coding and standardization processes. It provides principles for open source standardization, such as being customer-centric and identifying requirements early, and leveraging existing standards where possible rather than duplicating efforts. The overall goal of standardization for open source is to help unlock the business value of open source technologies for customers.
This document discusses different types and patterns of innovation. It notes that innovation can be categorized as product vs process, radical vs incremental, competence-enhancing vs competence-destroying, and architectural vs component. It also discusses how the performance and adoption of new technologies typically follows an S-curve pattern over time. Finally, it outlines how technological change often follows a cyclical pattern from an initial discontinuity to a period of exploration, emergence of a dominant design, and incremental improvements before the next discontinuity.
The document summarizes three models related to innovation:
1) The S-Curve model describes the introduction, growth, and maturation of innovations as well as technological cycles within industries. It involves early stages of large investment and small improvements followed by more rapid progress as knowledge accumulates.
2) The Teece Model explains that imitability and complementary assets determine profits from innovation. Imitability refers to how easily competitors can copy a technology. Complementary assets like distribution channels are also important.
3) The Abernathy-Utterback Model outlines three phases - fluid, transitional, and specific. The fluid phase involves experimentation, the transitional phase sees standardization and a dominant design emerge, and the
Essential of Technology Entrep. & Innovation- Chapter three critical factors...Motaz Agamawi
In chapter three, we are discussing the critical factors of management of technology.
This course provide the students with a conceptual knowledge regarding the essentials for management practices of a technology-based organization, and the evolution of technology. The topics covered in this course would include: • Introduction to the concept of entrepreneurship. • What entrepreneurs do and their importance to economy • How to seize business opportunity; • Know the process of creativity and difference between invention and innovation • Know how innovation is important as a dimension of entrepreneurship • Critical factors in managing technology; including • The Time Factor (Osborn effect) • Technology Push and Market Pull • The S-Curve of Technology • Technology and Product Life Cycle • The Chain Equation of Technology Innovation • Price Knowledge Gape Relation • Difference between Entrepreneurship and Stewardship Management • Difference between technology leader and followers • Competition and Competitiveness Concepts. • The process of the technological innovation; • Who are the customers; and • How to optimize cost and find finance for your projects • Demonstrate the importance of business plan, including the marketing and financial plans and how to prepare it. • Know the structure and management of a technology organization
mHealth Israel_Patent Strategy: Disruptive vs Incremental InnovationLevi Shapiro
Presentation by Roy Melzer, Head of Software Department, Ehrlich & Fenster, for the mHealth Israel community, Feb 8, 2017. IP strategy based on diversification and portfolio theory, combining incremental and disruptive innovation.
In the 1960s, Stanley Milgram addressed a number of letters to a friend of his, a stockbroker in Boston. Milgram then distributed these letters to a random selection of people in Nebraska. He instructed the individuals to pass the letters to the addressee by sending them to a person they knew on a first-name basis who seemed in some way closer (socially, geographically, etc.) to the stockbroker. This person would then do the same, until the letters reached their final destination
The document discusses technology exports and joint ventures. It provides details on different types of technology exports, including transfers of intellectual property rights and licensing agreements. It also outlines the objectives and needs for technology exports, such as earning royalties and accessing technical knowledge. Joint ventures are described as strategic partnerships between two or more companies, where they share resources to achieve common goals. Successful factors for joint ventures include partner selection, access to financing, adopting modern practices, and technology transfers. Examples provided include the Shanghai BOC industrial gases joint venture and the Sony-Ericsson mobile phone partnership.
The document discusses the advantages and disadvantages of being a first mover when introducing a new technology to the market. Some key first mover advantages include gaining brand loyalty, preempting scarce resources, and benefiting from network effects. However, first movers also face higher R&D costs, uncertainty over customer preferences, and immature supply chains. The optimal timing of market entry depends on factors like the size of the technology's advantage, the maturity of complementary goods, and the threat of competition. Later entrants can capitalize on the efforts of first movers while avoiding some of their risks.
1. Integrated Strategic Patent Management
2. The Monetizing Patent’s DNA: How to identify and develop the monetizing patents
3. Internet of Things (IoT) Patent Monetization New Business Model
4. Internet of Things (IoT) Strategic Patent R&D for New Value Creation
5. Evaluation of Monetized Patents for the Internet of Things (IoT) Connectivity Standards
6. Increasing Monetization Activities Exploiting LTE Patents
7. How much will Apple need to pay to Ericsson for a reasonable licensing royalty of 4G LTE patents?
8. Internet of Things (IoT) M&A Target Candidates Insights from Patents
9. Apple’s Strategic Alignment in Patent and M&A
10. Alcatel-Lucent acquisition by Nokia would provide leadership in Mobile based IoT innovation
11. Investment for Patent Monetization
12. Increasing IP Financing Activities Exploiting Wireless Patents
13. Internet of Things (IoT) Investment Insights from Patents
PPt Of New product development strategy of samsung hiteshkrohra
The document discusses new product development. It states that new product development is important for startups to guide the direction of the company and determine its success. It is key to gaining a competitive advantage but can be difficult for entrepreneurs with limited experience and resources. The document also discusses the importance of designing new products at minimal cost without sacrificing quality, and developing the technical aspects through experience rather than textbooks.
Intangible assets, which account for up to 90% of a company's value, especially patents, which make up the largest proportion of these assets, are hardly ever utilized for corporate value creation despite their value. In this presentation, I introduce patent management solutions for the development of patents that can contribute to corporate value creation, using the latest digital technologies such as AI, blockchain, and Web 3.0. I also introduce measures to maximize the financial use of patent assets secured through such patent management. In particular, I will look into the domestic and overseas trends of STO (Security Token Offering), which have recently been gaining attention in S. Korea, and learn about strategies and methods for patent asset STO.
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How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....Lacey Max
“After being the most listed dog breed in the United States for 31
years in a row, the Labrador Retriever has dropped to second place
in the American Kennel Club's annual survey of the country's most
popular canines. The French Bulldog is the new top dog in the
United States as of 2022. The stylish puppy has ascended the
rankings in rapid time despite having health concerns and limited
color choices.”
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...APCO
The Radar reflects input from APCO’s teams located around the world. It distils a host of interconnected events and trends into insights to inform operational and strategic decisions. Issues covered in this edition include:
Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
The Most Inspiring Entrepreneurs to Follow in 2024.pdfthesiliconleaders
In a world where the potential of youth innovation remains vastly untouched, there emerges a guiding light in the form of Norm Goldstein, the Founder and CEO of EduNetwork Partners. His dedication to this cause has earned him recognition as a Congressional Leadership Award recipient.
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Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
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Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
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MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
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McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
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Introduction
Have you ever dreamed of turning your innovative idea into a thriving business? Starting a company involves numerous steps and decisions, but don't worry—we're here to help. Whether you're exploring how to start a startup company or wondering how to start up a small business, this guide will walk you through the process, step by step.
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Profiting from technological innovation
1. PROFITING FROM TECHNOLOGICAL INNOVATION
IMPLICATIONS FOR INTEGRATION, COLLABORATION, LICENSING AND PUBLIC POLICY BY DAVID J.
TEECE
Maryam Behnam, Amir Salimi Dr. Bagheri
2. WHAT ARE WE TALKING ABOUT?
• This paper attempts to explain why innovating firms often fail to
obtain significant economic returns from an innovation, while
customers, imitators and other industry participants benefit.
3. WHAT ARE WE TALKING ABOUT?
• In this paper, a framework is offered which identifies the factors
which determine who wins from innovation: the firm which is
first to market, follower firms, or firms that have related
capabilities that the innovator needs.
5. 5
The EMI CAT case
The EMI CAT scanner is a classic case of
the phenomenon to be investigated. By
the early 1970s, the UK firm Electrical
Musical Industries (EMI) Ltd. was in a
variety of product lines including
phonographic records, movies, and
advanced electronics. EMI had developed
high resolution TVs in the 1930s and
pioneered airborne radar during World
War II.
An EMI senior research engineer
engaged in pattern recognition research
which resulted in his displaying a scan of
a pig's brain.
6. 6
Computerized axial tomography (CAT)
was viable for generating cross-
sectional "views" of the human body,
the greatest advance in radiology
since the discovery of X rays in 1895.
While EMI was initially successful with
its CAT scanner, within 6 years of its
introduction into the US in 1973 the
company had lost market leader- ship,
and by the eighth year had dropped
out of the CT scanner business.
The EMI CAT case
8. PROFITING FROM INNOVATION: BASIC
BUILDING BLOCKS
The appropriability regime
The dominant design paradigm
Complementary assets
9. REGIMES OF APPROPRIABILITY
A regime of appropriability refers to the environmental factors,
excluding firm and market structure. The most important dimensions
of such a regime are the nature of the technology, and the efficacy
of legal mechanisms of protection.
It has long been known
that patents do not work
in practice as they do in
theory.
10. REGIMES OF APPROPRIABILITY
Often patents provide little protection because the legal
requirements for upholding their validity or for proving their
infringement are high.
In some industries, particularly where the innovation is embedded in
processes, trade secrets are a viable alternative to patents.
The degree to which knowledge is tacit or codified also affects
ease of imitation.
11. REGIMES OF APPROPRIABILITY
The property rights environment can thus be classified according to
the nature of the technology and the efficacy of the legal system to
assign and protect intellectual property.
12. THE DOMINANT DESIGN PARADIGM
It is commonly recognized that there are two stages in the
evolutionary development of a given branch of a science: the
preparadigmatic stage and the paradigmatic stage
These "standards" remain in force unless or until the paradigm is
overturned.
13. THE DOMINANT DESIGN PARADIGM
In the early stages of industry development, product designs are
fluid, manufacturing processes are loosely and adaptively
organized, and generalized capital is used in production.
The preparadigmatic stage where the competition amongst firms
manifests itself in competition amongst designs
14. THE DOMINANT DESIGN PARADIGM
At some point in time one design or a narrow class of designs
begins to emerge as the more promising.
The Model T Ford, the IBM 360, and the Douglas DC-3
Once a dominant design emerges, competition shifts to price and
away from design.
Innovation is not necessarily halted once the dominant design
emerges.
16. THE DOMINANT DESIGN PARADIGM
When dominant design emerges, the innovator might well end up
positioned disadvantageously relative to a follower. Hence, when
imitation is possible and occurs coupled with design modification
before the emergence of a dominant design, followers have a good
chance of having their modified product anointed as the industry
standard, often to the great disadvantage of the innovator.
17. COMPLEMENTARY ASSETS
In almost all cases, the successful commercialization of an
innovation requires that the know-how in question be utilized in
conjunction with other capabilities or assets.
19. COMPLEMENTARY ASSETS
Generic assets are general purpose assets which do not need to be
tailored to the innovation in question.
Specialized assets are those where there is unilateral dependence
between the innovation and the complementary asset.
Cospecialized assets are those for which there is a bilateral
dependence.
20. COMPLEMENTARY ASSETS
Examples of generic assets:
*the manufacturing facilities
Examples of specialized assets depending on the innovation:
* Embedded DVD-players in PC's
*The cottage industry of accessories made for the iPod media device.
Examples of co-specialized assets (innovation and asset depend on
each other)
* Strong biotechnology patents and the marketing and distribution
resources of the large pharmaceuticals.
22. TIGHT APPROPRIABILITY REGIMES
Even if the innovator does not possess the desirable endowment of
complementary costs, protection of intellectual property will afford
the innovator the time to access these assets.
If, however, the complementary assets are specialized or
cospecialized, contractual relationships are exposed to hazards,
because one or both parties will have to commit capital to certain
irreversible investments which will be valueless if the relationship
between innovator and licensee breaks down.
23. TIGHT APPROPRIABILITY REGIMES
If the innovator comes to market in the preparadigmatic phase
with a sound product concept but the wrong design, a tight
appropriability regime will afford the innovator the time needed to
perform the trials needed to get the design right.
If the innovator possesses an impenetrable thicket of patents, or
has technology which is simply difficult to copy, then the market
may well afford the innovator the necessary time to ascertain the
right design before being eclipsed by imitators.
24. WEAK APPROPRIABILITY
Tight appropriability is the exception rather than the rule.
Accordingly, innovators must turn to business strategy if they are to
keep imitators/ followers at bay.
25. WEAK APPROPRIABILITY
PREPARADIGMATIC PHASE
In the preparadigmatic phase, the innovator must be careful to let
the basic design "float" until sufficient evidence has accumulated
that a design has been delivered which is likely to become the
industry standard.
26. The early history of the
automobile industry exemplifies
exceedingly well the importance
for subsequent success of
selecting the right design in the
preparadigmatic stages. None of
the early producers of steam
cars survived the early shakeout
when the closed body internal
combustion engine automobile
emerged as the dominant
design.
27. WEAK APPROPRIABILITY
PREPARADIGMATIC PHASE
As a general principle, it appears that innovators in weak
appropriability regimes need to be intimately coupled to the
market so that user needs can fully impact designs.
Hence, the probability that an innovator will enter the paradigmatic
phase possessing the dominant design is problematic.
The probabilities will be higher the lower the relative cost of
prototyping,
and the more tightly coupled the firm is to the market.
28. WEAK APPROPRIABILITY
PARADIGMATIC STAGE
As the leading design or designs begin to be revealed by the
market, volumes increase and opportunities for economies of scale
will induce firms to begin gearing up for mass production by
acquiring specialized tooling and equipment, and possibly
specialized distribution as well.
29. WEAK APPROPRIABILITY
PARADIGMATIC STAGE
As the terms of competition begin to change, and prices become
increasingly unimportant, access to complementary assets becomes
absolutely critical.
Specialized assets, involve significant irreversibilities and cannot be
easily accessed by contract, as the risks are significant for the party
making the dedicated investment.
31. CHANNEL STRATEGY ISSUES
It is now necessary to delve deeper into the appropriate control
structure that the innovator ideally ought to establish over these
critical assets.
At one extreme, the innovator could integrate into all of the
necessary complementary assets, as illustrated in fig. 7, or just a few
of them, as illustrated in fig. 8.
32.
33. CHANNEL STRATEGY ISSUES
At the other extreme, the innovator could attempt to access these
assets through straightforward contractual relationships.
34. CHANNEL STRATEGY ISSUES
CONTRACTUAL MODES
The advantages of a contractual solution are obvious.
The innovator will not have to make the upfront capital
expenditures needed to build or buy the assets in question.
35. CHANNEL STRATEGY ISSUES
CONTRACTUAL MODES
Chemical and petrochemical product innovations are not quite so
easy to protect, which should raise new challenges to innovating
firms in the developed nations as they attempt to shift out of
commodity petrochemicals.
37. Cipher Case
Cipher Data Products, Inc. contracted
with IBM to develop a low-priced
version of IBM's 3480 0.5 inch
streaming cartridge drive, which is
likely to become the industry
standard.
As Cipher management points out,
"one of the biggest advantages to
dealing with IBM is that, once you've
created a product that meets the high
quality standards necessary to sell
into the IBM world, you can sell into
any arena." 37
38. CHANNEL STRATEGY ISSUES
CONTRACTUAL MODES
It is most important to recognize, however, that strategic
(contractual) partnering, is exposed to certain hazards, particularly
for the innovator.
It may be difficult to induce suppliers to make costly irreversible
commitments which depend for their success on the success of the
innovation.
39. CHANNEL STRATEGY ISSUES
CONTRACTUAL MODES
The arrangement appears to have been prudent, yet there were
clearly hazards for both sides.
It is difficult to write, execute, and enforce complex development
contracts, particularly when the design of the new product is still
"floating."
40. CHANNEL STRATEGY ISSUES
CONTRACTUAL MODES
Briefly, there is the risk that the partner won't perform according
to the innovator's perception; there is the added danger that the
partner may imitate the innovator's technology.
However, that contractual or partnering strategies in certain cases
are ideal.
41. CHANNEL STRATEGY ISSUES
CONTRACTUAL MODES
Even if the partner fails to perform, adequate alternatives exist (by
assumption, the partners' capacities are commonly available) so the
innovator's efforts to successfully commercialize its technology
ought to proceed profitably.
43. CHANNEL STRATEGY ISSUES
INTEGRATION VERSUS CONTRACT STRATEGIES." SUMMARY”
The difficult strategic decisions arise in situations where the
appropriability regime is weak and where specialized assets are
critical to profitable commercialization.
44.
45. CHANNEL STRATEGY ISSUES
INTEGRATION VERSUS CONTRACT STRATEGIES." SUMMARY”
Even when firms pursue the optimal strategy, other industry
participants may take the jackpot. This possibility is unlikely when
the intellectual property in question is tightly protected. The only
serious threat to the innovator is where a specialized complementary
asset is completely "locked up,"
47. CHANNEL STRATEGY ISSUES
MIXED MODES
Decisions to integrate or-license involve trade-offs, compromises,
and mixed approaches. It is not surprising therefore that the real
world is characterized by mixed modes of organization, involving
judicious blends of integration and contracting. Sometimes mixed
modes represent transitional phases.
48. CHANNEL STRATEGY ISSUES
THE CA T SCANNER, THE IBM PC, AND NUTRA- SWEET." INSIGHTS FI"OM
THE FRAMEWORK
IME and CAT scanner
49. CHANNEL STRATEGY ISSUES
THE CA T SCANNER, THE IBM PC, AND NUTRA- SWEET." INSIGHTS FI"OM
THE FRAMEWORK
IBM computers
50. CHANNEL STRATEGY ISSUES
THE CA T SCANNER, THE IBM PC, AND NUTRA- SWEET." INSIGHTS FI"OM
THE FRAMEWORK
NutraSweet(Searle)
51. IMPLICATIONS FOR R&D STRATEGY, INDUSTRY STRUCTURE, AND TRADE POLICY
ALLOCATING R &D RESOURCES
The strategies which the firm must follow to maximize its share of
industry profits relative to imitators and other competitors. There is
no guarantee of success even if optimal strategies are followed.
The innovator can improve its total return to R&D, however, by
adjusting its R&D investment portfolio to maximize the probability
that technological discoveries will emerge that are either easy to
protect with existing intellectual property law, or which require for
commercialization cospecialized assets already within the firm's
repertoire of capabilities.
52. IMPLICATIONS FOR R&D STRATEGY, INDUSTRY STRUCTURE, AND TRADE POLICY
SMALL FIRM VERSUS LARGE FIRM COMPARISONS
Business commentators often remark that many small entrepreneurial
firms which generate new, commercially valuable technology fail
while large multinational firms, often with a less meritorious record
with respect to innovation, survive and prosper.
53. IMPLICATIONS FOR R&D STRATEGY, INDUSTRY STRUCTURE, AND TRADE POLICY
REGIMES OF APPROPRIABILITY AND INDUSTRY STRUCTURE
In industries where legal methods of protection are effective, or
where new products are just hard to copy, the strategic necessity for
innovating firms to integrate into cospecialized assets would appear to
be less compelling than in industries where legal protection is weak.
54. IMPLICATIONS FOR R&D STRATEGY, INDUSTRY STRUCTURE, AND TRADE POLICY
INDUSTRY MATURITY, NEW ENTRY, AND HISTORY
Incumbents will for sure own the cospecialized assets, and new
entrants will find it necessary to forge links with them. Here lies the
explanation for the sudden surge in "strategic partnering" now
occurring internationally, and particularly in the computer and
telecommunications industry
55. IMPLICATIONS FOR R&D STRATEGY, INDUSTRY STRUCTURE, AND TRADE
POLICY
THE IMPORTANCE OF MANUFACTURING TO INTERNATIONAL
COMPETITIVENESS
An important policy for the innovating nation is whether the
identity of the firms and nations performing this function matter.
In a world of tight appropriability and zero transactions cost - the
world of neoclassical trade theory - it is a matter of indifference
whether an innovating firm has an in-house manufacturing capability,
domestic or foreign.
56. IMPLICATIONS FOR R&D STRATEGY, INDUSTRY STRUCTURE, AND TRADE POLICY
HOW TRADE AND INVESTMENT BARRIERS CAN IMPACT INNOVATORS' PROFITS
when an innovating firm generating profits needs to access
complementary assets abroad, host governments, by limiting access,
can sometimes milk the innovators for a share of the profits,
particularly that portion which originates from sales in the host
country.
57. IMPLICATIONS FOR R&D STRATEGY, INDUSTRY STRUCTURE, AND TRADE POLICY
IMPLICATIONS FOR THE INTERNATIONAL DISTRIBUTION OF THE BENEFITS
FROM INNOVATION
Iinnovators who do not have access to the relevant specialized and
cospecialized assets may end up ceding profits to imitators and other
competitors, or simply to the owners of the specialized or cospecialized
assets.
Integration, which by definition involves ownership, is distinguished from pure contractual modes in that it typically facilitates incentive alignment and control. If an innovator owns rather than rents the complementary assets needed to commercialize, then it is in a position to capture spillover benefits stemming from increased demand for the complementary assets caused by the innovation.
However, in industries experiencing rapid technological change, technologies advance so rapidly that it is unlikely that a single company has the full range of expertise needed to bring advanced products to market in a timely and cost effective fashion. Hence, the integration issue is not just a small firm issue.
These situations, which in reality are very common, require that a fine-grained competitor analysis be part of the innovator's strategic assessment of its opportunities and threats. This is carried a step further in fig. 11, which looks only at situations where commercialization requires certain specialized capabilities. It indicates the appropriate
strategies for the innovators and predicts the outcomes to be expected for the various players.
The vertical axis: how those who possess the technology (the innovator or imitators) are positioned vis ~ vis those firms that possess required specialized assets
The horizontal axis: the "tightness" of the appropriability regime, tight regimes being evidence by iron clad legal protection coupled with technology that is simply difficult to copy;
For instance, because of the convergence of computer and telecommunication technology, firms in each industry are discovering that they often lack the requisite technical capabilities in the other. Since the technological interdependence of the two requires collaboration amongst those who design different parts of the system,
intense cross-boundary coordination and information flows are required. When separate enterprises are involved, agreement must be reached on complex protocol issues amongst parties who see their interests differently. Contractual difficulties can be anticipated since the selection of common technical protocols amongst the parties will often be followed by transaction-specific investments in hardware and software. There is little doubt that this was the motivation behind IBM's purchase of 15 percent of PBX manufacturer Rolm in 1983, a position that was expanded to 100 percent in 1984. IBM's stake in Intel, which began with a 12 percent purchase in 1982, is most probably not a transitional phase leading to 100 percent purchase, because both companies realized that the two corporate cultures are not very compatible, and IBM may not be as impressed with Intel's technology as it once was.
EMI's failure to reap significant returns from the CAT scanner can be explained in large measure by reference to the concepts developed above. The scanner which EMI developed was of a technical sophistication much higher than would normally be found in a hospital, requiring a high level of training, support, and servicing. EMI had none of these capabilities, could not easily contract for them, and was slow to realize their importance. It most probably could have formed a partnership with a company like Siemens to access the requisite capabilities.
Technicare - GEGodfrey Houndsfield
The IBM PC, introduced in 1981, was a success despite the fact that the architecture was ordinary and the components standard. Philip Estridge's design team in Boca Raton, Florida, decided to use existing technology to produce a solid, reliable micro rather than state of the art. With a one-year mandate to develop a PC, Estridge's team could do little else. However, the IBM PC did use what at the time was a new 16-bit microprocessor (the Intel 8088) and a new disk operating system (DOS) adapted for IBM by Microsoft. Other than the microprocessor and the operating system, the IBM PC incorporated existing micro "standards" and used off-the-shelf parts from outside vendors. IBM did write its own BIOS (Basic Input/output System) which is embedded in ROM, but this was a relatively straightforward programming exercise.
In 1982, Searle reported combined sales of $74 million for NutraSweet and its table top version, Equal. In 1983, this surged to $336 million. In 1985, NutraSweet sales exceeded $700 million 9 and Equal had captured 50 percent of the U.S. sugar substitute market and was number one in five other countries.
Put differently, if an innovating firm does not target its R&D resources towards new products and processes which it can commercialize advantageously relative to potential imitators and/or followers, then it is unlikely to profit from its investment in R&D.
In cases where legal protection is weak or nonexistent, the control of cospecialized assets will be needed for long-run survival.
In industries in which technological change of a particular kind has occurred, which required deployment of specialized and/or cospecialized assets at the time, a configuration of firm boundaries may well have arisen which no longer has compelling efficiencies. Considerations which once dictated integration may no longer hold, yet there may not be strong forces leading to divestiture. Hence existing firm boundaries may in some industries - especially those where the technological trajectory and attendent specialized asset requirements has changed - be rather fragile. In short, history matters in terms of understanding the structure of the modern business enterprise. Existing firm boundaries cannot always be assumed to have obvious rationales in terms of today's requirements.
Even when the specialized assets are possessed by the innovating firm, they may be located abroad.