How to Capture Value from Innovation: Shaping Intellectual Property and Industry Architecture

Gary P. Pisano; David J. Teece

Article | California Management Review

How to Capture Value from Innovation: Shaping Intellectual Property and Industry Architecture

by Gary P. Pisano and David J. Teece

Abstract

Capturing value from innovation requires innovators to figure out how to blunt inroads into the profit stream by imitators, customers, suppliers, and other providers of complementary products and services. In making strategic decisions around technology commercialization, managers often assume that the intellectual property environment and the architecture of the industry are beyond their control. This need not be so. Shows how managers can shape both the appropriability regime and the architecture of the industry in ways that can benefit the innovator by blunting the actions of others who may endeavor to tap into the stream of profits generated by innovation. Even small firms can play important roles. Tools include putting information into the public domain, helping to shape standards, and promoting modularity.

Keywords: Technological Innovation; Intellectual Property; Knowledge Management; Knowledge Sharing; Industry Structures; Standards; Commercialization; Value;

Format: Print

19 pages

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Citation:

Pisano, Gary P., and David J. Teece. "How to Capture Value from Innovation: Shaping Intellectual Property and Industry Architecture." Special Issue on Leading Through Innovation (50th Anniversary Issue). California Management Review 50, no. 1 (Fall 2007): 278–296.

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How to Capture Value from Innovation: Shaping Intellectual Property and Industry Architecture

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