Schilling (2010)
21 important questions on Schilling (2010)
How is appropriabilty determined?
How easily or quickly competitors can imitate the innovation is a function of
- The nature of the technology itself
- The strength of the mechanisms used to protect the innovatoin
What is meant with the nature of the technology?
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Where is the nature of the technology also dependent on?
How are the outcomes of interactions?
What are the legal mechanisms?
Which three tests must an invention pass to be patentable?
- It must be useful
- It must be novel
- It must not be obvious
What is a trademark?
Do trademarks require registration?
When is information regarded to be a trade secret?
- Offers a distinctive advantage to the company in the form of economic rents
- Remains valuable as long as the information remains private
Which three criteria must the information meet?
- The information must not generally be known or readily ascertainable through legitimate means
- The information must have economic importance that is contingent upon its secrecy
- The trade secret holder must exercise reasonable measures to protect the secrecy of the information.
What are wholly proprietary systems?
What are wholly open systems?
What are the advantages of protection?
- Proprietary systems offer greater rent appropriability, developers often have more money and incentive to invest in technological development, promotion and distribution
- A penetration pricing strategy can be adopted to build its installed base
- A firm may be willing to lose money in the short term to secure the technology’s position as the standard, because once the technology has emerged as a standard, the payoff can be substantial and enduring.
- Gives the firm architectural control over the technology.
Where does architectural control refer to?
When can architectural control be very valuable?
Why should the firm consider production capabilities, marketing capabilities and capital in deciding whether and to what degree it should protect is innovation?
Why should the firm consider industry opposition against sole-source technology in deciding whether and to what degree it should protect is innovation?
Why should the firm consider resources for internal development in deciding whether and to what degree it should protect is innovation?
Why should the firm consider control over fragmentation in deciding whether and to what degree it should protect is innovation?
Why should the firm consider incentives for architectural control in deciding whether and to what degree it should protect is innovation?
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