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R&D investments generate often also a return outside the innovating firm itself; these knowledge externalities are called technology spillovers.
It strongly emphasized the interactions between technological capabilities and market needs, as well as the confluence of technological capabilities and market needs within the framework of the innovating firm.
We consider an innovation contest between n firms in the presence of knowledge leakages from an innovating firm to its rivals.
"Right tech, wrong time" syndrome is a nightmare for any innovating firm.
To "implement" the innovation in terms of procurement of feedstock (intermediate inputs), production and processing, and marketing, the innovating firm undertakes strategic design of its supply chain.
Moreover, for an innovation with multiple uses, licensing can potentially cover more of the potential applications than the innovating firm could exploit on its own.
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In the biotechnology and computer software industries, there are major differences in the dominant risks faced by innovating firms such that we would expect their relative success to differ between Germany, Sweden and the UK.
According to him, it is competition that provides the incentive to innovate (firms compete to survive).
A distinctive feature of the minority of innovating firms that create innovations or adopt them early is that they compare themselves with, compete with, and try to differ from other innovating firms, whereas the majority of firms compare themselves with, and conform to, a broader group of firms.
The export intensity of innovating firms is systematically higher than that of non-innovating firms.
However, firms that innovate only in their home country experience significantly more product piracy cases than international innovating firms.
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CEO of Professional Science Editing for Scientists @ prosciediting.com