Profiting From Innovation in New Technology-Based Firms

Abstract

Purpose - Prior research has addressed the challenges related to appropriating intellectual property and capturing profit from innovation in large and established firms. The purpose of this thesis is to explore how new technology-based firms with limited resources should increase their chances of capturing significant shares of the profit generated from their innovation. Design/method/approach - A single case study was conducted at a young firm striving to commercialize an innovation, derived from scientific discoveries at a Swedish university, that enables removable textile printing. The research employed an abductive approach, in which an iterative exchange between data analysis and literature continued throughout the project. The empirical data was collected using semi-structured and unstructured interviews, observations, and document review. Findings - A conceptual model is proposed, to guide and structure the strategy development process in new technology-based firms seeking to capture profit from their innovation. The model draws on the distinguishing characteristics of new technology based firms, extant literature on profiting from innovation, and the goals, values, challenges, and analytical approach employed in an empirical case. The model illustrates an iterative exchange between an analysis of opportunity, entailing the core assets and the accompanying appropriability regime, and a strategy analysis integrating asset structuring and appropriation of intellectual property. Originality/value - Through a continuous and iterative strategy development approach, the study conceptualizes how new technology-based firms should approach the challenge of capturing profit from innovation, accounting for endogenous and exogenous appropriability factors, as well as core and complementary assets. Paper type - Master´s thesis