INTELLECTUAL PROPERTY AND COMPETITITVE ADVANTAGE Rakesh Basant IIM, Ahmedabad.
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Transcript of INTELLECTUAL PROPERTY AND COMPETITITVE ADVANTAGE Rakesh Basant IIM, Ahmedabad.
INTELLECTUAL PROPERTY AND COMPETITITVE ADVANTAGE
Rakesh BasantIIM, Ahmedabad
IP-Advantage/Rakesh Basant
Strategic Question
How to leverage IP to reduce costs, increase profitability and market share vis-à-vis your competitors?
To analyze this question, focus on
Conceptual building blocks for analysis
Key strategic issues for building competitiveness with IP
Firm perspective but implications for research labs, public/private
IP-Advantage/Rakesh Basant
Expected Learning Points
Ownership of IP may be a necessary but not a sufficient condition for competitive advantage
IP needs to be seen in a larger context of corporate and technology strategies to derive maximum value
Importance of cross-functional groups to develop and commercialize IP
Broad framework for understanding the role of IP in enhancing competitiveness
IP-Advantage/Rakesh Basant
Building Blocks
Intellectual property (IP) v/s Intellectual assets (IA)
Not all innovations are protected and all IP commercialized
Technology, an important element of intellectual assets
Knowledge embodied in product, process and practices
Codified v/s tacit knowledge
IP-Advantage/Rakesh Basant
Building BlocksContd...
Appropriability: Ability to appropriate benefits arising from IA
Perfect appropriability a misnomer
Technology imitation possibilities: complexity, cumulativeness, circumstantial specificity and tacitness
Practices tacit/cumulative - difficult to imitate
Sector specificity: chemicals v/s engineering, life cycle
IPR regime: laws and their implementation
IP-Advantage/Rakesh Basant
Building BlocksContd...
Product-Process-Practice linkages
Conventional technology/product life cycle (T/PLC) approach v/s simultaneous attention on product and process: sector specificity, T/PLC duration?
Issue of standards, design freedom (sector specific)
Breakthrough, platform, derivative projects
IP-Advantage/Rakesh Basant
Building BlocksContd...
Complementary Assets Required for Commercialization of IP
Complementary technologies
Manufacturing, Marketing, Distribution, After sales support
Customer relationships
Complementary intellectual property: Patents, trade secrets & brands?
Generic v/s Specialized:Irreversibility, commitment, contracting difficulties, lock-in
IP-Advantage/Rakesh Basant
Key Strategic Issues for Competitive Advantage
How to access complementary assets?
The case of CAT scanner: EMI, GE, Johnson & Johnson
Role of various appropriability regimes, asset specificity etc
How to leverage the linkages between the 3Ps?
Get the linkages right, unbundle to learn and develop capabilities
Avoid over the wall syndrome, participation of manufacturing in design process
IP-Advantage/Rakesh Basant
Key Strategic Issues for Competitive Advantage
Contd..How to leverage the linkages between the 3Ps? Contd...
Process development as an integral part of the product development process to become competitive
Lower manufacturing costs
Accelerated time to market, lead times
Rapid ramp-up
Faster introduction of new products
IP-Advantage/Rakesh Basant
Key Strategic Issues for Competitive Advantage
Contd..Process development as an integral part of the product development process contd...
Enhanced product functionality and customer acceptance
Extended proprietary position: appropriability improves, process imitation more difficult and practice most difficult?
Issues of quality, delivery times, defect rates etc.
Role of process-practice interface
IP-Advantage/Rakesh Basant
Key Strategic Issues for Competitive Advantage
Contd..The need of linking the three Ps is very real because
Product Life Cycles are becoming shorter
Hard to manufacture product designs
Fragmented demanding markets
High costs of development
Implications for public sector labs?
Public-private partnership?
IP-Advantage/Rakesh Basant
Key Strategic Issues for Competitive Advantage
Contd..How to leverage the links among various IPRs?
Complementary IP on new features/process/designs
Patent thickets
Patents/copyrights for software and trade dress for interface?
Combine trade secrets with patents and trademarks
Munificence of patented technology: strategic use for different products/sectors
IP-Advantage/Rakesh Basant
Key Strategic Issues for Competitive Advantage
Contd..How to produce a design that is closer to the customer?
Over the wall syndrome: R&D-Manufacturing-Marketing
How to exploit the relevance of tacit knowledge?
Links between codified & tacit knowledge: the 3 Ps, appropriability
Management of tacit knowledge critical: organizational practices to diffuse (share) - incentives, labour turnover