The main advantage of licensing as a means of exploiting an innovation is that the innovator can profit from the innovation without the need to invest in the complementary resources and capabilities required for commercialization
The best strategy for exploiting an innovation depends on two major factors: first,the strength of the firm's intellectual property in the innovation and,second,the resources and capabilities available to the firm.
A shopping mall provides an interface between two types of customer: the retailers which lease retail stores and the consumers that shop at these stores.Hence a shopping mall may be regarded as a platform.
The main lesson learned from the standards wars involving VHS and Betamax in VCRs and between the Apple Mac and IBM PC in personal computers was that liberal licensing of technology is the key to building market leadership.
Open innovation is based upon the assumption that although there are huge gains form collaborative knowledge sourcing; these gains can be outweighed by risks outsiders expropriating one's own knowledge.
If technological breakthroughs increase the feasibility and attractiveness of fuel cells as a means of propulsion for vehicles,the profits that can be earned from the developers of the fuel cell technology will be limited by:
A firm has an innovation that has weak patent protection but its exploitation requires a number of complementary resources that it does not possess.Its best mode of exploiting the innovation is likely ot be: