Collaborate on the Core, Compete on the Edges

Format:Print
| Language:English
| Pages:14

Abstract

In the rapidly evolving environment of modern business, the digitization of economic activity and the ubiquitous integration of technology across industries are fundamentally altering how companies develop and implement strategy. The rise of digital technologies has not only intensified competition but has also opened new opportunities for collaboration, even among firms that may be direct competitors in certain markets. This shift is particularly pronounced in technology-focused industries, where the pace of innovation and the complexity of the technologies involved compel extending traditional strategic frameworks. This module note presents a framework that identifies five factors firms should consider when drawing the line between competition and collaboration on a given technology: 1) whether the market is winner-take-all, 2) the location in the technology life cycle (S-curve), 3) the location in the technology stack, 4) the level of industry competition, and 5) the level of social acceptance (including regulatory uncertainty) towards the technology.