ATHENA WEEK 2 - 5

Question 1

Appropriability

Answer 1

the degree to which a firm is able to capture the rents from its innovations, how long can you make money from it before others copy you?

Question 1

the appropability of an innovation is determined by?

Answer 1

how easily/quickly competitors can imitate the innovation

Question 2

tacit knowledge

Answer 2

knowledge that cannot be readily codified or transferred in written form.

Question 3

socially complex knowledge

Answer 3

knowledge that arises from the interaction of multiple individuals

Question 4

patent

Answer 4

property right protecting a process, machine, manufactured item or variety of plant (computer)

Question 5

trademark

Answer 5

an indicator used to distinguish the source of a good (logos)

Question 6

copyright

Answer 6

a property right protecting works of authorship (software)

Question 7

criteria for patents (3)

Answer 7

1. Useful: desirable result, solve a problem, improve on or propose a new use for an existing development or show potential for doing
2. Novel: it must not already be patented or described in public literature
3. Not too obvious: a person with experience or skills in the particular field of the patent would not be expected to achieve the same invention with a normal amount of effort

Question 8

the following is not patentable

Answer 8

*Substituting one material for another (plastic to metal)

*Merely changing the size of an already existing device

*Making something more portable

*Substituting an element for an equivalent element

*Altering an item’s shape

Question 9

international treaties seek to harmonize the patent laws around the world

Answer 9

1.Paris Convention for the Protection of Industrial Property

2.Patent Cooperation Treaty

Question 10

patent trolling

Answer 10

when an individual or firm misuses patents against other individuals or firms in attempt to extract money from them

Question 11

patent thickets

Answer 11

a dense web of overlapping patents that can make it difficult for firms to compete or innovate –> PREVENT INNOVATION

Question 12

Copyright

Answer 12

The owner of the copyright has the right to:

*Reproduce the work in copies or phonorecords

*Prepare derivate works based upon the work (turning a book into a movie)

*Distribute copies of the work to the public by sale or other transfer of ownership, or by rental, lease, or lending

*Perform the work publicly
*Display the copyrighted work publicly

Question 13

trademark

Answer 13

word, phrase, symbol, design or other indicator that is used to distinguish the source of goods from one party from goods of other.

Question 14

trade secret

Answer 14

information that belongs to a business that is held private

Question 15

information is typically considered to be a trade secret only if

Answer 15

1. It offers a distinctive advantage to the company
2. Remains valuable only as long as the information remains private

Question 16

For something to be a trade secret, it must (3):

Answer 16

1. Not be common knowledge or easy to find out legally.
2. Be valuable because it is secret.
3. Be protected by the owner (they must try to keep it secret).

Question 17

open source software

Answer 17

is a software whose code is made freely available to others for use, augmentation and resale

Question 18

what’s the disadvantage of open-source software

Answer 18

decrease the opportunity for monopoly rents, once they lose control it might be hard to regain

Question 19

Wholly proprietary systems

Answer 19

goods based on technology that is owned and vigorously protected through patents, copyrights, secrecy, or other mechanisms

examples: IOS, Coca Cola recipe, microsoft

Question 20

Wholly open systems

Answer 20

goods based on technology that is not protected and that is freely available for production or augmentation by other producers

examples: Bluetooth, usb

Question 21

is it like you are fully wholly open or wholly proprietary systems?

Answer 21

no you can be partially open and partially closed

Question 22

Original equipment manufacturers

Answer 22

firms that assemble goods using components made by other manufacturers, also called value-added resellers

Question 23

advantages of protection

Answer 23

1. greater appropriability: helps the company capture most of the profits from their innovation. which leads to people being more motivated to invest
2. establishing a standard: you may lose money in the beginning but if you become the standard, you’ll get more money
3. architectural control: The company can control how the technology evolves, making sure it works well with their products but not easily with competitors’ products.
4. strategic positioning:helps a company dominate a part of the market and control other related products or services

Question 24

advantages of diffusion

Answer 24

1. faster adoption: benefit from multiple firms producing, distributing, and promoting them, leading to rapid growth in the installed base 2. increases market reach 3. improved complementary goods supply 4. avoiding industry opposition 5. leveraging external resources: : Firms lacking sufficient internal resources can use external partnerships to improve their technology’s performance and adoption rate