The choice of being a leader or a follower should depend on:
A)The extent of protection of the innovation, the nature of the knowledge involved, and the potential to establish a standard
B)The development cost of the innovation, the importance of complementary resources, and the shape of the economy
C)The extent of protection of the innovation, the potential to establish a standard, and the importance of complementary resources
D)The potential to establish a standard, the relative powers of the other players in the industry, and the development cost of the innovation

Question

Quizplus · Accepted Answer

The extent of protection of the innovation is important because being a leader requires significant investment in research and development, and without protections such as patents, the leader may not be able to recoup their investment. The potential to establish a standard is important because being a leader allows a company to influence the direction of the industry and potentially set the standard for others to follow. The importance of complementary resources is important because being a follower allows a company to utilize existing resources and partnerships to more easily adopt innovations created by others. The other options do not take into account all three of these important factors.

The Choice of Being a Leader or a Follower Should