L6 Practice of Innovation Strategy Flashcards
What are 5 theories for biotech start ups?
Signaling
Agency
Pecking order
Intellectual
Resource based
What increases external attraction?
Business management expertise
Academic status
General technology expertise
What does venture survival increase with?
Business management expertise
General technology expertise
What doesnt affect venture survival?
Academic status
Why does VC increase the most with a large team with no expertise?
factors linked to run a firm based on social dynamics - large team shows you have the right constitution & are capable of running a large team
What is a moral hazard?
agent with more info has the intention to behave inappropriately from the perspective of the agent with less info
What do contracts try to overcome?
risks of information asymmetry & moral hazards
Why does VC have high return of investment?
High information asymmetry -> high moral hazard
What 5 types of other capital?
Relational
Social
Structural
Reputational
Human
What is intellectual gravity?
people are attracted to company where star scientist resides
What is the Matthew effect?
a pattern in which those who begin with advantage accumulate more advantage over time and those who begin with disadvantage become more disadvantaged over time
Why are some innovative firms better than others?
caused by their architectural competence: ability to facilitate cooperation among different scientific disciplines required to develop patentable drugs
What are 4 key resources?
Valuable
Rare
Costly to imitate
Firm is organised
What do the VRIO resources lead to?
Sustained competitive advantage
Define a value resource.
does this product/thing/market opp./equipment have important value for the firm & does resource result in a continued flow of new ideas
