Strategic IP management : sv
Les1: introduction to intellectual property
IP is a cross section in 3 fields:
Strategy
Innovation
Law
- Legal frameworks set boundaries on the strategies the managers can take
1. Product differentitation vs cost leadership
Links en rechts : zijn 2 generic strategies of porter
- Cost leadership : rechts
o Offer same value to clients but at the lowest cost to yourself
o If you focus on cost leadership, you focus on reducing cost of raw materials en
economies of scale , getting mùore customers
o Bv Ryanair , basic fit
- Product differentiation : links
o You offer superior value to customers but maintain the same of similar level
of cost to your competitors
o If you focus on differentiation, you want to offer more product features and
better product service en invest in building a complementary market
o Bv apple : iphone and make it easier to make apps because it increases the
value of the iphone
2 ways a company can achieve a competitive advantage
,There is a trade off between the 2: Trade off between reducing cost en creating value
Ikea zei: “Designing beautiful-but-expensive products is easy. Designing beautiful products that are
inexpensive and functional is a huge challenge.
2. Innovate for competitive advantage
There are a few activities that can reconcile this trade off : innovation
Innovate for competitive advantage
Bv : sony’s portable audio players
- Importance of innovation while saving costs or improving products
- Innovation helps companies achieve competitive advantage
- Companies need to innovate continuously. With technological development
technologies lose their value
- Eerst was de casette innovatief, daarna niet meer
- There are shifts in the market, you need tob e innovative again then
You have a technology en that undergoes a series of incremental changes (improvements)
up to a certain point where you have an event of technological substitution: 1 market
standard gets replaced by another standard.
Innovation to become and stay competitive
Het is wel een costly process: kijk maar in de pharma
3. Strategy
What is the key strategic challenge for a firm that achieves competitive advantage?
To keep competitive advantage, very difficult because there is natural tendency in market
that other companies will try to copy success
immitation
Bv: apple en Samsung tablets, na d eipad uitkwam ging Samsung design nadoen
,Strategic risks: imitation of innovation facilitated by knowledge spillovers
How can you imitate
- Reverse engineer
- Knowledge has it owns natural way of spilling over
o When you change employers , they move their knowledge with them
How rapidly does new knowledge leaks out?
- Products: on average 35% of the firms serveid within 6 months the nature of the
product is in the hands of competitors, how it functions and how it is made
- Voor processes duurt het wat langer want is more easy to protect: 13% in 6 maanden
- In lt 40% is gekend na 18 maanden
- In chemical industrie they are able to keep their knowledge secret for longer
Ip protection improves appropriability conditions
- IP is al about giving the exclusive right to benefit from it (for a certain period of time)
- Granting them temporarily monopoli rights
4. Why protect IP?
4.1 Social welfare
Incentive:
- we want to maximize what is good for society
- Giving the person who has done the intelactual activity exmisucive right can be good
for society overall
- It gives incentives for other people to also do this activity
- Tragedy of the commons:
o If you have a village with open ground for all the farmers to use
o Then all the farmers has incentive to maximaze the size of their sheep
because the food is free
o But if each farmes has a lot of sheep, the ground will become bad , the
common ground is destroid and everybody loses
o Sometimes ope ning up a resource for public use can be negative for society
as a whole
Prevents perfect competition:
- Sometimes opening up a thing for society can have a negative effect.
- If other people come to market, prices lower. Greater competition, more demand.
- Up until a point where companies start selling near marginal costs (markets too
crowded)
, - How is IP relevant;
o if you give patent to company A, you prevent firms B, C and.. To entering the
market. Give company A more market power.
Promotes investment:
- Research has found that entrepreneurs who own patent will more likely get
investors. For investors it’s safer to risk money for startup with patented technology
4.2 Fairness
Unfair competition: free riding problem
Deceit
Het is fout om van iets te benefitten wat je zelf niet hebt gemaakt of voor gewerkt hebt
4.3 Personal en Cultural
The personal aspect comes from ip as an expression of someones personality Kant
4.4 To much protection
To much protection or exclusivity can backfire on society
Bv life saving medicine ging van 14 dollar to 750 dollar
Omdat iemand de ip van de oude owner kocht en die besloot de prijs heel hoog te zetten
Regulators moeten dit voorkomen
5. Different types of IP
5.1 What is IP ?
“Intellectual property refers to the creative activities of literary, artistic, and scientific works,
performances of performing artist, and broadcasts; inventions in all fields of human
endeavor; scientific discoveries; industrial design; trademarks, service marks, and
commercial names, designations, protection against unfair competition, and all other rights
resulting from intellectual activity in the industrial, scientific, literary or artistic fields.”
Les1: introduction to intellectual property
IP is a cross section in 3 fields:
Strategy
Innovation
Law
- Legal frameworks set boundaries on the strategies the managers can take
1. Product differentitation vs cost leadership
Links en rechts : zijn 2 generic strategies of porter
- Cost leadership : rechts
o Offer same value to clients but at the lowest cost to yourself
o If you focus on cost leadership, you focus on reducing cost of raw materials en
economies of scale , getting mùore customers
o Bv Ryanair , basic fit
- Product differentiation : links
o You offer superior value to customers but maintain the same of similar level
of cost to your competitors
o If you focus on differentiation, you want to offer more product features and
better product service en invest in building a complementary market
o Bv apple : iphone and make it easier to make apps because it increases the
value of the iphone
2 ways a company can achieve a competitive advantage
,There is a trade off between the 2: Trade off between reducing cost en creating value
Ikea zei: “Designing beautiful-but-expensive products is easy. Designing beautiful products that are
inexpensive and functional is a huge challenge.
2. Innovate for competitive advantage
There are a few activities that can reconcile this trade off : innovation
Innovate for competitive advantage
Bv : sony’s portable audio players
- Importance of innovation while saving costs or improving products
- Innovation helps companies achieve competitive advantage
- Companies need to innovate continuously. With technological development
technologies lose their value
- Eerst was de casette innovatief, daarna niet meer
- There are shifts in the market, you need tob e innovative again then
You have a technology en that undergoes a series of incremental changes (improvements)
up to a certain point where you have an event of technological substitution: 1 market
standard gets replaced by another standard.
Innovation to become and stay competitive
Het is wel een costly process: kijk maar in de pharma
3. Strategy
What is the key strategic challenge for a firm that achieves competitive advantage?
To keep competitive advantage, very difficult because there is natural tendency in market
that other companies will try to copy success
immitation
Bv: apple en Samsung tablets, na d eipad uitkwam ging Samsung design nadoen
,Strategic risks: imitation of innovation facilitated by knowledge spillovers
How can you imitate
- Reverse engineer
- Knowledge has it owns natural way of spilling over
o When you change employers , they move their knowledge with them
How rapidly does new knowledge leaks out?
- Products: on average 35% of the firms serveid within 6 months the nature of the
product is in the hands of competitors, how it functions and how it is made
- Voor processes duurt het wat langer want is more easy to protect: 13% in 6 maanden
- In lt 40% is gekend na 18 maanden
- In chemical industrie they are able to keep their knowledge secret for longer
Ip protection improves appropriability conditions
- IP is al about giving the exclusive right to benefit from it (for a certain period of time)
- Granting them temporarily monopoli rights
4. Why protect IP?
4.1 Social welfare
Incentive:
- we want to maximize what is good for society
- Giving the person who has done the intelactual activity exmisucive right can be good
for society overall
- It gives incentives for other people to also do this activity
- Tragedy of the commons:
o If you have a village with open ground for all the farmers to use
o Then all the farmers has incentive to maximaze the size of their sheep
because the food is free
o But if each farmes has a lot of sheep, the ground will become bad , the
common ground is destroid and everybody loses
o Sometimes ope ning up a resource for public use can be negative for society
as a whole
Prevents perfect competition:
- Sometimes opening up a thing for society can have a negative effect.
- If other people come to market, prices lower. Greater competition, more demand.
- Up until a point where companies start selling near marginal costs (markets too
crowded)
, - How is IP relevant;
o if you give patent to company A, you prevent firms B, C and.. To entering the
market. Give company A more market power.
Promotes investment:
- Research has found that entrepreneurs who own patent will more likely get
investors. For investors it’s safer to risk money for startup with patented technology
4.2 Fairness
Unfair competition: free riding problem
Deceit
Het is fout om van iets te benefitten wat je zelf niet hebt gemaakt of voor gewerkt hebt
4.3 Personal en Cultural
The personal aspect comes from ip as an expression of someones personality Kant
4.4 To much protection
To much protection or exclusivity can backfire on society
Bv life saving medicine ging van 14 dollar to 750 dollar
Omdat iemand de ip van de oude owner kocht en die besloot de prijs heel hoog te zetten
Regulators moeten dit voorkomen
5. Different types of IP
5.1 What is IP ?
“Intellectual property refers to the creative activities of literary, artistic, and scientific works,
performances of performing artist, and broadcasts; inventions in all fields of human
endeavor; scientific discoveries; industrial design; trademarks, service marks, and
commercial names, designations, protection against unfair competition, and all other rights
resulting from intellectual activity in the industrial, scientific, literary or artistic fields.”
