Browsing Working Papers (INO) by Title
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'Being Infringed' as a Normatively Induced Innovation Exploitation StrategyReitzig, Markus; Henkel, Joachim; Heath, Christopher (, 2006)[More information][Less information]
Abstract: Patent trolls (or sharks) are small patent holding individuals or firms who trap R&D intense manufacturers in patent infringement situations in order to receive damage awards for the illegitimate use of their technology. While of great concern to management, their existence and impact for both corporate decision makers and policy makers remains to be fully analyzed from an academic standpoint. In this paper we show why patent sharks can operate profitably, why they are of growing concern, how manufacturers can forearm themselves against them, and which issues policy makers need to address. To do so, we map international indemnification rules with strategic rationales of small patent-holding firms within a game-theoretical model. Our central finding is that the courts’ unrealistic consideration of the trade-offs faced by inadvertent infringers is a central condition for sharks to operate profitably. Keywords: Patent, patent shark, patent troll, damage award, infringement JEL Classifications: M00, M11, M21, K00, K11, K33 URI: http://hdl.handle.net/10398/7249 Files in this item: 1
ssrn-id885914.pdf (277.4Kb) -
Drewsen, Merete; Lando, Henrik; Cummins, Tim (København, 2006)[More information][Less information]
Abstract: This is not a theoretical paper but an application of existing law and economic contract theory to the issue of how to draft a specific kind of contract. It is addressed to practitioners and is intended for practical use. It will be part of a Wiki (as in Wikipedia) for contract drafting, which IACCM (International Association for Contract and Commercial Management) has initiated. The main theoretical aspect of the article concerns the application of the value maximization principle (the Coase theorem) to the drafting of confidentiality agreements. While the article is not theoretical, its prescriptions are open to theoretical dispute; this may especially be the case for the section on the size of damages. URI: http://hdl.handle.net/10398/7250 Files in this item: 1
ssrn-id917927.pdf (114.9Kb) -
Foss, Nicolai Juul (København, 1997)[More information][Less information]
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Lando, Henrik (København, 2008)[More information][Less information]
Abstract: When a court sets standards of due care in a tort or contract case with a view to how the standards will affect future behavior of parties similar to the litigants, it should sometimes realize that only one of the two future parties is likely to become informed of the standards. The standards can then only have a direct effect on the behavior of the informed party, and it may be thought that the court should hold the informed party strictly liable, which maximizes this effect. However, this ignores that the informed party may, although strictly liable, lower her level of care in order to induce the uninformed party to take greater care. In this situation, the negligence rule may do better than strict liability, since the discontinuity of the negligence rule can prevent the informed party from strategically lowering her level of care. Under the negligence rule, optimal standards are sensitive to whether the informed party acts first and to whether she is the injurer or the victim. For both the informed and the uninformed, there are circumstances in which the standard should be higher than first best and other circumstances where it should be lower. URI: http://hdl.handle.net/10398/7221 Files in this item: 1
wp01-2008.pdf (121.8Kb) -
an Austrian viewSautes, Frédéric E.; Foss, Nicolai Juul (København, 1999)[More information][Less information]
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The Case of 'Making-or-Buying' ArticlesVang, Jan (København, 2003)[More information][Less information]
Abstract: In this paper the two canonical theories of the firm - transaction costs economics and the knowledge-based view of the firm – predictions on ‘make-or-buy’ are tested on the news industry. The news industry provides an interesting case on which to test the two theories since it is characterized by a high degree of urgency. Urgency refers to the need to catch and process inputs fast. A tendency that is becoming more widespread in other industries where the production cycle tends to be reduced. The test is don on original data on the newspaper industry collected by the author. The conclusions drawn are that that newspapers are organized differently than is predicted from the knowledge-based view of the firm and transaction cost economics. The newspapers do no specialize in core competencies measured in terms of topics covered. On the contrary, a precondition for outsourcing is well-developed competencies in house. The widespread use of integration cannot either be explained as a solution to hold up either, such as transaction cost economics predicts. The reason behind has to be sought in urgency. URI: http://hdl.handle.net/10398/7259 Files in this item: 1
03-13.pdf (345.4Kb) -
noter til en tiltrædelsesforelæsningFoss, Nicolai Juul (København, 1998)[More information][Less information]
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Do Patents "Crowd Out” Prizes?Davis, Jerome; Davis, Lee (København, 2006)[More information][Less information]
Abstract: Debate over the merits of patents versus inducement prizes has tended to ignore the signaling roles of patents, and totally ignores the impact of patent signaling on prize contests. This paper asks: How does patent signaling affect the strategic choices of firms considering entering prize contests? First, we consider contests that do not allow patenting, then contests that do. If patenting is not allowed, we argue, patent-holders, both internal and external to the contest, can adversely impact prize contests by claiming prize winner violation of their patents, and suing for damages. The likelihood of such challenges being made can deter entry, particularly in contests requiring large sunk costs. Furthermore, the firm's decisionmaking process will discriminate against entering prize contests and favor R&D projects with patentable outcomes. Together, these problems may circumscribe any future wider role for prize contests, and limit their major putative welfare advantage: the ability to place prize winning solutions into the public domain. In contests where entrants may patent their inventions, entry is subject to basically the same problems as above (although such contests may carry some advantages as regards contest design). Our overall conclusion is that prize contests are liable to fail due to the lack of potential entrants, particularly as regards entry on the part of larger commercial firms. URI: http://hdl.handle.net/10398/7204 Files in this item: 1
ipr-w_12-davisdavis-mai03-1.pdf (332.8Kb) -
Knudsen, Christian (København, 2002)[More information][Less information]
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an evolutionary perspective on outsourcingMahnke, Volker (København, 2002)[More information][Less information]
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How firms organize the production of user modifications in the computer games industryJeppesen, Lars Bo (København, 2004)[More information][Less information]
Abstract: Modding – the modification of existing products by consumers – is increasingly exploited by manufacturers to enhance product development and sales. In the computer games industry modding has evolved into a development model in which users act as unpaid "complementors" to manufacturers’ product platforms. This article explains how manufacturers can profit from their abilities to organize and facilitate a process of innovation by user communities and capture the value of the innovations produced in such communities. When managed strategically, two distinct, but not mutually exclusive business models appear from the production of user complements: firstly, a manufacturer can let the (free) user complements "drift" in the user communities, where they increase the value to consumers of owning the given platform and thus can be expected to generate increased platform sales, and secondly, a manufacturer can incorporate and commercialize the best complements found in the user communities. Keywords: innovation, modding, user communities, software platform, business model. JEL code(s): L21; L23; O31; O32 URI: http://hdl.handle.net/10398/7227 Files in this item: 1
wp 2004-03_main doc.pdf (265.4Kb) -
toward a resource-based viewFoss, Nikolaj Juul; Iversen, Mikael (København, 1997)[More information][Less information]
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Lando, Henrik (København, 2007)[More information][Less information]
Abstract: This article suggests a rationale for statutes of limitations in sales law, i.e. for the practice of cutting off buyers’ remedies after the expiration of a limitation period. The rationale is based on the notion of wear and tear, which carries two implications: First, a good that breaks down after several periods of use is likely to be of nearly optimal quality, and in this case little is gained by allowing a claim. Second, the number of dysfunctions is likely to increase over time, which implies that the pool of potential claims, and in particular the pool of unjustified claims, is likely to increase over time. It will be shown theoretically that these implications can provide a rationale for cutting off claims. The rationale will be supported with empirical evidence stemming from a recent extension of the limitation period from one to two years in Denmark. URI: http://hdl.handle.net/10398/7237 Files in this item: 1
wp06-2007.pdf (237.2Kb) -
on procedural and consequential interests of the rule-guided individualKaisla, Jukka (København, 2001)[More information][Less information]
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Foss, Nicolai Juul (København, 1998)[More information][Less information]
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Lorenzen, Mark (København, 1999)[More information][Less information]
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Individuals, Teams and Research Infrastructure in the European UnionFoss, Kirsten; Foss, Nicolai (København, 2003)[More information][Less information]
Abstract: This report maps research in institutional economics in management science in the European Union for the 1995 to 2002 period. The reports applies Internet search based on a university listing, search on journal databases, key informants and an internet-based survey. 195 researchers are identified. In (sub-)disciplinary terms, organization, strategy, corporate governance, and international business are the major areas of application of institutional economics ideas. In terms of countries, the EU strongholds are Holland, Denmark, UK, and Germany. There is apparently no or very little relevant research in Ireland, Portugal, Luxembourg and Greece. Based on the findings of the report, it seems warranted to characterize the EU research effort in the field as being rather dispersed and uncoordinated. Thus, there are no specialized journals, associations or PhD courses. This state of affairs is partly explainable by the highly pragmatic way in which research in management science is typically conducted (so that institutional economics approaches are likely to be merely one type of input among many). Keywords Institutional economics, management science, European union. URI: http://hdl.handle.net/10398/7278 Files in this item: 1
wp03-03.pdf (1.012Mb) -
strategy, R&D and the management of technologyHusted, Kenneth; Frøslev Christensen, Jens (København, 1999)[More information][Less information]
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Sanchez, Ron (København, 2008)[More information][Less information]
Abstract: Part I of this paper applies the principles of the philosophy of science and the derived scientific method to analyze the foundational concepts and core proposition of the Resource-Based View (RBV) as popularized by Barney (1986, 1991, 1997). This analysis identifies seven fundamental conceptual deficiencies and logic problems in Barney’s conceptualization of "strategically valuable resources” and in Barney’s VRIO framework for identifying strategically valuable resources that can be sources of sustained competitive advantage. Three problems -- the Value Conundrum, the Tautology Problem in the Identification of Resources, and the Absence of a Chain of Causality -- relate to the RBV’s and VRIO’s failure to provide an adequate conceptual basis for identifying strategically valuable resources. The Uniqueness Dilemma, the Cognitive Impossibility Dilemma, and an Asymmetry in Assumptions about Resource Factor Markets result in an inability of the VRIO framework to support identification of resources that can be sources of sustained competitive advantage. More fundamentally, the core proposition of the RBV – that resources that are strategically valuable, rare, inimitable, and organizationally embedded are sources of sustainable competitive advantage – is argued to result directly in the Epistemological Impossibility Problem that precludes use of the scientific method in RBV research. This paper argues that until these conceptual deficiencies and logic problems are recognized and remedied, the RBV – in spite of its current popularity -- is and will remain theoretically sterile and incapable of contributing in any systematic way to the development of strategy theory. Part II of this paper then suggests how foundational concepts developed within the competence perspective on strategy provide essential remedies for the identified deficiencies and problems in the RBV -- and thereby provide a more conceptually adequate basis for representing the nature of firms in the scientific study of their interactions and competitive outcomes. URI: http://hdl.handle.net/10398/7231 Files in this item: 1
wp02-2008.pdf (629.3Kb) -
Foss, Nicolai Juul (København, 2001)[More information][Less information]