BUS 478 Chapter 12: Chapter 12 Technology-based Industries and the Management of Innovation

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Chapter 12 technology-based industries and the management of innovation. Invention = creation of new products/processes through the development of new knowledge or combinations of existing knowledge. Innovation is the initial commercialization of invention by producing/marketing the new good/service, or using a new method of production/combination y see fig. try use initial lead time to build capabilities/market position, and entrench industry leadership, move ahead on learning curve: complementary resources (resources to finance, produce, market the innovation) Which mechanisms are effective at protecting innovation? y table showing relative effectiveness of different measures in each industry y generally, patent protection is of limited effectiveness. Strategies to exploit innovation: how and when to enter. Alternative strategies to exploit innovation y how to maximize returns from innovation? y see fig. In terms of commitment of resources: internal commercialization > jv > alliance > outsourcing > licensing y choices depends on 2 main factors: characteristics of the innovation.

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