SCBUS223 Lecture Notes - Lecture 6: Market Capitalization, Protection Mechanism, Herbicide
1 Nov 2016
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Firms must decide whether and how to protect their technological innovations. It helps retain control over the ip and the rents from it. Not protecting ip can be advantageous, encouraging others to support the technology and how fast it can be dominant. Vertically integrated to make and protect all their ip"s internally. The degree to which a firm is able to capture the rents from its innovation. Determined by how easily competitors can copy the innovation. Some are difficult to copy and can be protected through different ipp methods. Apple ecosystem: companies innovate to appropriate rents in the marketplace through different revenue streams. Start-ups are becoming bureaucracies since they have a corporate environment. Pharmaceutical industry is harder to copy than electronic industry. Patents: rights granted by the government that excludes others from making/using the invention and should be useful and novel. Can be utility, design, plant: new process, original designs, and new varieties of plants.
