Ceccagnoli (2009) "Appropriability, Preemption, and Firm Performance
10 important questions on Ceccagnoli (2009) "Appropriability, Preemption, and Firm Performance
What is widely believed to be a central determinant of a firm's competitive advantage?
Due to what is such competitive advantage transitory?
- The ease with which such new knowledge can spill over to rivals
- Eroding rents quickly either because other firms imitate the innovative firm
- Because other firms introduce substitute products and processes
Which strategies are typically used to increase appropriability?
- Secrecy
- Patent protection
- Being first to market
- The ownership of specialized complementary marketing and manufacturing assets
- Higher grades + faster learning
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How may a patent by commonly used?
- To commercialize an innovation (vertical integration)
- Defend an incumbent against potential lawsuits
- License a technology to other firms
- Block another firm's patent
How is preemptive patenting defined?
Preempative patenting is based on two basic elements related to the existince of
- Threat of entry
- Presence of ex ante market power
When would the expected profits form preemption be null?
When is invention of the substitute technology always valuable to the incumbent?
When is an innovation defined as drastic?
Why is preemptive patenting behavoir strategic?
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