If a first mover does not have complementary assets,barriers to imitation are low,and there are many capable competitors,the first mover should
A) license the innovation to others.
B) enter into a joint venture to protect the product.
C) produce the product itself.
D) sell the technology outright to another firm.
E) wait until competitors develop an alternative product.

Question

Quizplus · Accepted Answer

If a first mover does not have complementary assets, barriers to imitation are low, and there are many capable competitors, it is best for the first mover to license the innovation to others. This way, the first mover can still earn revenue from the innovation without the risk of being outcompeted by more capable firms.

If a First Mover Does Not Have Complementary Assets,barriers to Imitation