Pisano, Teece (2007)

Question 1

Exogenous or endogenous?

Answer 1

In an economic model, an exogenous variable is one whose value is determined outside the model and is imposed on the model, and an exogenous change is a change in an exogenous variable.

In contrast, an endogenous variable is a variable whose value is determined by the model.

Question 2

Innovators could weaken or strengthen appropriability conditions.

Answer 2

• Intentionally weakening, publish to public domain to prevent future patenting
• Strengthening, legislative lobbying (agains software privacy)
• Promote IP to standard-setting bodies (4g, 5g)