The choice of being a leader or a follower in innovation should depend on:
A)The extent of legal protection of the innovation,the nature of the knowledge involved,and the potential to establish a standard
B)The development cost of the innovation,the importance of complementary resources,and the profitability of the industry in which the innovation is to be applied
C)The extent of protection of the innovation,the potential to establish a standard,and the importance of complementary resources
D)The potential to establish a standard,the relative powers of the other players in the industry,and the development cost of the innovation

Question

Quizplus · Accepted Answer

The extent of protection of the innovation, the potential to establish a standard, and the importance of complementary resources are all critical factors in determining whether to be a leader or a follower in innovation. Legal protection is also important (as in option A), but it is just one of many factors to consider. The profitability of the industry (as in option B) is not directly related to the decision of being a leader or a follower in innovation. The relative powers of other players in the industry (as in option D) may also be important, but the potential to establish a standard and the availability of complementary resources are more directly relevant to the decision.

The Choice of Being a Leader or a Follower in Innovation