James et el. (2013) "How firms capture value from their innovations
38 important questions on James et el. (2013) "How firms capture value from their innovations
The authors examine what is known and identify future research opportunities regarding two questions:
- When should firms choose to invest in the use of a specific value capture mechanism or bundle of mechanisms?
- What are the relative effects of these value capture mechanisms on profits from innovation?
Which four broad sets of factors are identified (contextual conditions)
- Institutional factors such as the breadth and effectiveness (i.e., enforcement) of intellectual property laws;
- Industry characteristics associated with competitive intensity, including the degree and type of product differentiation, the speed and uncertainty of technical change, and the extent to which innovation is cumulative;
- Distinctions tied to firm attributes such as the level and focus of research and development, stock of technological capabilities, and innovation activity of the organization;
- Technology-level characteristics that capture the degree of complexity and/or tacit nature of the knowledge embedded in the innovation.
Where does the use of secrecy as a protection mechanism refer to?
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Where does lead time advantage result from?
Where do complementary assets refer to?
Which four broad contextual factors affect the decision to patent?
- The varying strength of legal protection for intellectual property rights across distinct product and geographic contexts.
- Intellectual property laws
- Firm-specific characteristics such as the scale and scope of R&D activities, the ability to manage the intellectual property patenting process, and firm size.
- The complexity or nature of the knowledge underlying an innovation.
What is the institutional condition?
In which two ways does the strength of the intellectual property regime affect an innovator's expected costs of preventing imitation?
- The increased expectation of infringement directly raises expected patent litigation costs.
- The number of expected infringing firms affects the cost of identifying particular rivals against which to make a claim for punitive damages.
What does lead to more patentable elements?
What are three reasons why firms vary in their use of patents to capture value form their innovations?
- Superior innovation capabilities create a "shadow of the future" that minimizes inefficient patent disputes
- Firms with larger or more experienced intellectual property teams are better able to identify infringement and enforce legal remedies
- Some firms patent to stimulate information dissemination regarding their innovations or to influence the direction of innovative activity. (Patenting may serve as a mechanism for information signaling rather than capturing value from innovation
What is the industry condition?
Why is it easier to identify and defend agains infringements in discrete product industries?
What is the firm condition?
What is the knowledge condition?
What does capturing value from secrecy involve?
Why does the costs of secrecy increase when there is intense competition?
What is the institutional condition with secrecy?
Industry condition of secrecy
Firm condition of secrecy
Why should firms consider cooperating with other companies to foster future innovativeness?
What has the technology condition for influence on secrecy?
What is a downside of secrecy?
As complexity of the technology underlying an innovation increases, a firm must weigh the costs and benefits of secrecy as a value capture strategy, why?
Where do the costs of secrecy depend on?
Industry perspective for lead time advantages
What is the firm condition that might influence a firm's ability to capture value from lead time advantages?
Technological condition lead time advantages
What is the assumption with complementary assets?
Industry condition complementary assets
Firm condition complementary assets
Technological condition complementary assets
Institutional/Industry conditions patents and secrecy
Firm/Technology conditions patents and secrecy depends on which innovation types firm is engaging in:
- Product innovation: well-articulated knowledgeàcan be protected with patents
- Process innovation: includes knowledge which is hard to codify --> better protected with secrecy
Institutional condition patents and complementary assets
- Strong appropropriability regime --> new entrants capture more value by licensing complementary assets
- Weak appropropriabilty regime --> new entrants should try to compete with rivals via own or co-developed complementary assets
Industry condition patents and complementary assets
Firm condition patents and complementary assets
Technology condition patents and complementary assets
What is the patent paradox?
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