How to capture value from innovation

de Gary P. Pisano

In making strategic decisions about how to capture value from innovation, managers often look at two critical domains-the intellectual property environment and the architecture of the industry-as beyond their control. Yet, the intellectual property environment and the architecture of the industry can have profound influences on who wins (and who does not) from innovation. In this paper, we argue that under the right circumstances, these two domains can be shaped by managers in ways that favor one firm over another.

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