Modularity for value appropriation
Subtitle: how to draw the boundaries of intellectual property
By: Joachim Henkel, Carliss Y. Baldwin
Contributors: Baldwin, Carliss Y. (Carliss Young); Harvard Business School
Series: Working paper / Harvard Business School -- 11-054; Working paper (Harvard Business School) -- 11-054.
Publisher: Harvard Business School
Published: 2010
Place of publication: [Boston]
Language: eng
Number of pages: 43
Description: The existing theory of modularity explains how modular designs create value. We extend this theory to address value appropriation. A product or process design that is modular with respect to intellectual property (IP) allows firms to better capture value in situations where knowledge and value creation are distributed across many actors. We propose a theory of IP modularity based on value maximization net of transaction and agency costs. We then use case examples to extend the theory into practical settings and derive strategic recommendations and empirical predictions.
Notes: "November 2010"--Publisher's website.

Includes bibliographical references.