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Profiting from technological innovation: …
285 Profiting from technological innovation : implications for integration , collaboration , licensing and public policy David J. TEECE * School of Business Administration, University of California, Berkeley, CA 94720, Final version received June i986 This paper attempts to explain why innovating firms often fail to obtain significant economic returns from an innovation , while customers, imitators and other industry participants be- nefit. Business strategy - particularly as it relates to the firm's decision to integrate and collaborate - is shown to be an important factor. The paper demonstrates that when imitation is easy, markets don't work well, and the profits from innova- tion may accrue to the owners of certain complementary assets, rather than to the developers of the intellectual property.
285 Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy David J. TEECE * School of Business Administration, University of California, Berkeley, CA 94720, U.S.A.
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