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Technology, Organization, and Competitiveness: Perspectives on Industrial and Corporate Change

Online ISBN:
9780191596162
Print ISBN:
9780198290964
Publisher:
Oxford University Press
Book

Technology, Organization, and Competitiveness: Perspectives on Industrial and Corporate Change

Giovanni Dosi (ed.),
Giovanni Dosi
(ed.)
Professor of Economics
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David J. Teece (ed.),
David J. Teece
(ed.)
Mitsubishi Bank Professor in International Business and Finance, Haas School of Business
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Josef Chytry (ed.)
Josef Chytry
(ed.)

Senior Lecturer in the History of World Cultures, California College of Arts and Crafts, and Lecturer in the Humanities

University of California, Berkeley
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Published online:
1 November 2003
Published in print:
12 March 1998
Online ISBN:
9780191596162
Print ISBN:
9780198290964
Publisher:
Oxford University Press

Abstract

The profitability and growth of business firms is increasingly dependent upon the development and astute deployment of intangible (knowledge) assets. Wealth creation in an open world economy depends critically on technological innovation, and this in turn involves developing, owning, and astutely orchestrating knowledge assets and intellectual property. This is what is meant by dynamic capabilities. The value‐enhancing skills required in management are gravitating away from the administrative towards the entrepreneurial. The determinants of a firm's innovative capacity are rooted in organizational design, incentives, human resources, internal culture, and external linkages. Profiting from innovation is always a challenge, requiring the right business model, integration strategy, and organizational form. Licensing is one of many ways to capture value from innovation, but is generally not the most profitable, except when intellectual property rights are secure. Imitators are prolific and the survival and prosperity of the innovator requires the astute orchestration of intellectual property rights, and complementary assets. Managers designing market entry strategies must also be mindful of the evolution of standards. This book develops the principles involved in firm management and illustrates the interplay of these ideas.

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