IP modularity: Profiting from innovation by aligning product architecture with intellectual property

Joachim Henkel, Carliss Y. Baldwin, Willy Shih

Research output: Contribution to journalArticlepeer-review

59 Scopus citations

Abstract

Firms seeking to take advantage of distributed innovation and outsourcing can bridge the tension between value creation and value capture by modifying the modular structure of their technical systems. Specifically, this article introduces the concept of "IP modularity," which seeks to protect and capture value from intellectual property. The article defines what it means for a system to be "IP-modular," illustrates the application of this concept in a number of practical situations, and presents a comprehensive framework that can be used to design and evaluate value capture strategies for modular systems.

Original languageEnglish
Pages (from-to)65-82
Number of pages18
JournalCalifornia Management Review
Volume55
Issue number4
DOIs
StatePublished - 1 Jun 2013

Keywords

  • Distributed innovation
  • Intellectual property
  • Modularity
  • Open innovation
  • Value appropriation

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