Technologie und Innovationsmanagement (Subject) / Complementary assets (Lesson)
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This lesson was created by Niiklas1997.
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- Who benefits from an innovation? Not only the inventor, but also: - customers (when the value is higher than the price) - suppliers and complementors (when there is a high amount of sold products) - imitators (when they can marketing the imitation, hile saving R&D costs)
- The 2 components of the profitability of an innovation 1. appropriability regime, either strong or weak 2. complementary assets, generic, specialized, co-specialized
- Appropriability regime Appropriability regime or appropriability conditions = factors, that influence the possibility of profitable imitation of an innovation Examples:-> availability and strength of legal protection -> viability of secrecy-> characteristics of underlying technology
- Appropriability regime: strong vs. weak Strong: -> IPR: protectable and enforceable-> Technology: Hard to replicate-> Network effects: Allow customer lock-in-> New entrants: constrained (eingeschränkt)-> Size effects: economies of scale-> example industries: banks, chemicals Weak: -> IPR: not protectable and enforceable-> Technology: easy to replicate-> Network effects: few switching costs-> New entrants: open-> Size effects: scale no advantage-> example industries: food, retailing
- successful innovations require... ...complementary asstes, such as: -> distrubution -> service -> brand -> complementary technologies -> competetive manufacturing
- Examples for the different kinds of complementary assets Co-specialized assets: -> containerization needs co-specialized assets in ocean shipping and terminals Specialized assets: -> Containerized shipping and trucks, both of them need each other, but a truck can convert at low costs Generic assets: -> electric energy for the computer
- Teece’s model y-axis: imitability (high or low) x-axis: complementary assets (freely available or unimportant, on the left of the model; tightly held and important, on the right of the model) 1. High imitability/Freely available CA: Difficult to make money (Most software) 2. High imitability/Tightly held CA: holder of CA makes money (after sales service) 3. Low imitability/Freely available CA: Innovater makes money (electronics components) 4. Low imitability/Tightly held CA: Party with both technology and assets or with bargaining power makes money (pharmaceuticals)