Hedging your bets

Building and sustaining competitive advantage is challenging in a constantly changing business environment – especially since the sources of such advantages are increasingly knowledge-based. Facilitated by improved networks, knowledge spills over to competitors more easily than before. Consequently, protection of intangibles calls for new approaches. Companies have various means of protection at their disposal, and by taking advantage of them they can prevent, or at least delay, imitation. However, creating barriers against imitation has another side to it, and the needed transfer of knowledge may be unintentionally obstructed. The aim of this study therefore is to increase understanding of how firms can balance knowledge protection and sharing so as to benefit most from their knowledge assets. Thus, knowledge protection is approached through an examination of the appropriability regime – the combination of available and effective means of protecting intangibles and innovations, their profitability, and the increased rents due to R& D. This book is addressed to academics and managers who deal with strategic management of intellectual assets. IPR managers and managers responsible for strategy building and implementation can benefit from the presented insights. Also entrepreneurs tackling with everyday problems and limited resources may find useful approaches to their work.