Capturing value from knowledge assets: The new economy, markets for know-how, and intangible assets

California Management Review

Volumn , Issue 3, 1998, Pages 55-79

  Teece, David J ^a  

^a NONE

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EID: 0032388753     PISSN: 00081256     EISSN: None     Source Type: Journal    
DOI: 10.2307/41165943     Document Type: Article

References (36)

1. D.J. Teece, "The Market for Know-How and the Efficient International Transfer of Technology," Annuals of the American Association of Political and Social Sciences (November 1981), pp. 81-86.
2. S. Kuznets, Modern Economic Growth: Rate, Structure, Spread (New Haven, CT: Yale University Press, 1966).
3. These included the late Edwin Mansfield, Richard Nelson, Chris Freeman, Sidney Winter, Paul David, Nathan Rosenberg, Giovanni Dosi, and David Mowery.
4. See P. Romer, "What Determines the Rate of Growth and Technological Change," World Bank Working Papers, WPS 279, World Bank, 1989.
5. I. Nonaka and H. Takeuchi, The Knowledge Creating Company (New York, NY: Oxford University Press, 1995).
6. M. Miller, Merton Miller on Derivatives (London: John Wiley & Sons, 1997).
7. P. Grindley and D.J. Teece, "Managing Intellectual Capital: Licensing and Cross-Licensing in Semiconductors and Electronics," California Management Review, 39/2 (Winter 1997): 8-41.
8. That's not to say that these are not opportunities to take bets against the market, but such bets represent asset plays by investors which ought not be thought of as a foundation for competitive advantage, as gains need not require involvement in operations of any kind.
9. Teece (1981), op. cit.
10. B. Arthur, "Competing Technologies: An Overview," in G. Dosi et al., eds., Technical Change and Economic Theory (London: Frances Pinter, 1988).
11. D.J. Teece, G. Pisano, and A. Shuen, "Dynamic Capabilities and Strategic Manage" ment," Strategic Management Journal, 18/7 (1997): 509-533.
12. Following Dataquest, we define SLI as an integrated circuit that contains a com" pute engine, memory, and logic on a single chip and has more than 100,000 uti" lized gates. Two types of SLI devises can be recognized: ASICs (application-specific integrated circuits) that are sold to a single user, and ASSPs (application-specific standard product) that are sold to more than one user.
13. Dataquest, ASIC's Worldwide, December 18, 1995.
14. Fumio Kodama, Analyzing Japanese High Technologies (London: Pinter, 1991).
15. "A Dynamic Mix of Chips and Biotech," Forbes, January 26, 1996, pp. 76-81.
16. Teece (1981), op. cit., p. 84.
17. For analysis of the sources of innovation, see D.J. Teece, "Firm Organization, Industrial Structure, and Technological Innovation," Journal of Economic Behavior and Organization, 31 (1996): 193-224.
18. This section is based on Teece (1981), op. cit., p. 82-84.
19. These ideas are developed further in C.E. Shannon and W. Weaver, The Mathematical Theory of Communication (Chicago, IL: University of Illinois Press, 1949). I am grateful to Max Boisot for drawing them to my attention.
20. For example, we could identify innovation that were architectural or non architectural, competency enhancing or competency destroying.
21. This section is based in part on Teece, Pisano and Shuen, op cit.
22. D.J. Teece, "Technology Transfer by Multinational Firms: The Resource Cost of Transfering Technological Know-how," The Economic Journal, 87 (1977): 242-261.
23. S.A. Lippman and R.P. Rumelt, "Demand Uncertainty and Investment in Industry-Specfic Capital," Industrial and Corporate Change, 1/1 (1992): 235-262.
24. R. Nelson and S. Winter, An Evolutionary Theory of Economic Change (Cambridge, MA: Harvard University Press, 1982).
25. D.J. Teece, "Towards and Economic Theory of the Multiproduct Firm," Journal of Economic Behavior and Organization, 3 (1982): 39-63.
26. M.E. Porter, The Competitive Advantage of NAtions (New York, NY: Free Press, 1990).
27. See K. Clark and T. Fujimoto, Product Development performance: Strategy, Organization, and Management in the World Auto Industries (Cambridge, MA: Harvard Business School Press, 1991).
28. Nelson and Winter, op. cit.
29. Competences may in turn be embedded in other corporate assets, including assets complementary to knowledge assets.
30. S. Winter, "Knowledge and Competence as Strategic Assests," in D. Teece, ed., The Competitive Challenge: Strategies for Industrial Innovation and Renewal (New York, NY: Harper & Row, Ballinger Division, 1987).
31. This isn't necessary for broad level integration of physical components, which the bundling of intellectual property in products simplifies intellectual property transactions.
32. D.J. Teece, The Multinational Corporation and the Resource Cost of International Technology Transfer (Cambridge, MA: Ballinger, 1976), p. 48.
33. W.M. Cohen and D.A. Levinthal, "Absorption Capacity: A New Perspective on Learning and Innovation," Administrative Sciences Quarterly, 35 (1990): 128-152.
34. D. Mowery, "Firm Structure, Government Policy, and the Organizational of Industrial research," Business History Review, 58 (1984): 504-531.
35. The astute management of the value in a firm's competence/knowledge base is a central issue in strategic mangement. D.J. Teece, "Profiting from Technological Innovation," Research Policy, 15/6 (1986): 285-305. The firm must therefore be understood not just in terms of its competences, but also in terms of its dynamic capabilities and the ability to orchestrate internal and external assets so as to capture value. Dynamic capabilities reflect the entrepreneurial side of management. Incentives as well as the formal and informal structure of the firm are all elements of governance affecting dynamic capabilities. These elements together help define the firm as we know it. Accordingly, competitive advantage flows from both management and structure.
36. For an excellent compendium, see Nicolai Foss, ed., Resources, Firms and Strategies: A Reader in the Resource-Based Perspective (New York, NY: Oxford University Press, 1997).