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Essay / Research Paper Abstract
This is a 3 page paper that provides an overview of profits from technological innovations. The study determines that an organization's existing capacity to capitalize upon innovations is key. Bibliography lists 1 source.
Page Count:
3 pages (~225 words per page)
File: KW60_KFtekpro.doc
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Unformatted sample text from the term paper:
surely something of an innovator when he invented the Model T automobile, and the same could be said for those individuals who were able to make fortunes out of the
untapped potential of the internet throughout the late 1990s and early 2000s. However, innovation does not always immediately translate into value, at least in the form of profit. Often, those
organizations which are second or third to the market with a particular product will be able to capitalize on the innovation more than those who innovated it in the first
place. There are many reasons why this can happen. This paper explores the primary cause of innovator profit loss, as well as the role of transformational leadership in ensuring the
profitability of future innovations. This paragraph assists the student in providing a summary of the primary source that sets up the analysis to follow. Many studies have established the fact
that innovators typically are outperformed in terms of profits by those imitators who come to the market later with some slightly-retooled variation on the innovation in question (Teece, 1986). That
said, what are the reasons for this? Why is it that innovation and profit dont necessarily directly correlate to one another? The predominate cause of variance in who profits from
innovation seems to be structural; the "boundaries" of an organization help to determine how likely that organization is to profit off of any given innovation (Teece, 1986). Complimentary assets in
particular one of the biggest components of a structure that is well suited to profit (Teece, 1986). Complimentary assets are assets that an organization can levy in order to compliment
an innovation and make it more marketable. Any organization with a halfway decent research and development department can develop some kind of innovation, but if all they do with it
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