Abstract
Profiting from innovation is a theory that accounts for marketplace outcomes between innovators and follow-on rivals. Almost all innovations require complementary investments. The weaker the appropriability regime applicable to an innovation, and the weaker the market position of the innovator with respect to providers of complements, the harder it will be for the innovator to build a long-term advantage without pursuing corrective measures such as vertical integration. The timing of commercialization is also important because the earlier in the lifecycle of the industry an entry is made, the more financial resources will be required to survive.
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Teece, D.J. (2018). Profiting from Innovation. In: Augier, M., Teece, D.J. (eds) The Palgrave Encyclopedia of Strategic Management. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-00772-8_366
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DOI: https://doi.org/10.1057/978-1-137-00772-8_366
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