Abstract
The competitive potential embedded in new technology is not always captured by the innovator. Follower firms, customers, and suppliers are often the principal beneficiaries. When innovating firms lose to followers or imitators, the reason is often the failure of the innovator to build or access competitive capacity in activities, such as manufacturing, which are complementary to the innovation. This paper analyzes the make-or-buy decision with respect to these capacities in different competitive environments, including that of rapid technological change and easy imitation. Often it is pointless for firms to invest in R&D unless they are also willing to invest in the development of certain complementary capacities, at home or abroad.
Keywords
InnovatorImitationBusinessCompetitive advantageValue (mathematics)Industrial organizationComplementary assetsMarketingPrincipal (computer security)Competitor analysisEntrepreneurshipComputer science
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Publication Info
- Year
- 1988
- Type
- article
- Volume
- 18
- Issue
- 3
- Pages
- 46-61
- Citations
- 430
- Access
- Closed
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Cite This
David J. Teece
(1988).
Capturing Value from Technological Innovation: Integration, Strategic Partnering, and Licensing Decisions.
INFORMS Journal on Applied Analytics
, 18
(3)
, 46-61.
https://doi.org/10.1287/inte.18.3.46
Identifiers
- DOI
- 10.1287/inte.18.3.46