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Abstract:
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Occasionally
small
technology
start-‐ups
(STSUs)
are
unable
to
advance
their
technology
towards
commercialization
due
to
financial
limitations
and
lack
of
crucial
complementary
assets.
For
this
reason,
STSUs
are
bound
to
profit
through
an
intermediate
market
for
immature
technology.
Here,
STSUs
collaborate
with
incumbents
who
assume
control
over
the
technology,
mature
it
and
eventually
commercialize
it.
Different
collaboration
agreements
exist,
such
as
e.g.
licensing
or
joint
venture.
However,
some
STSUs
are
left
with
only
one
option,
namely
outright
technology
sale.
The
Profiting
from
Innovation
literature
studies
the
dynamics
of
innovation
and
the
implications
for
business
strategy.
However,
the
particularities
of
STSUs
bound
to
profit
from
technology
sale
are
neglected.
Accordingly,
this
thesis
provides
a
contribution
to
the
Profiting
from
Innovation
literature.
First,
it
is
hypothesized
that
Profiting
from
Innovation
has
a
limited
reach
in
terms
of
providing
adequate
strategic
advice
for
STSUs
bound
to
profit
from
technology
sale.
By
applying
the
Profiting
from
Innovation
framework
to
a
case
study
of
a
Danish
STSU
the
hypothesis
is
confirmed,
due
to
the
immature
nature
of
the
technology,
the
immature
state
of
the
industry,
and
the
lack
of
financial
resources.
It
is
argued
that
the
strategic
advice
offered
by
the
Profiting
from
Innovation
framework
is
focused
on
the
last
phases
of
the
innovation
process.
Subsequently,
this
thesis
sets
out
to
expand
the
reach
of
Profiting
from
Innovation
as
well
as
its
practical
application.
The
case
study
is
now
used
in
an
explorative
manner
while
derived
findings
are
enriched
with
selected
theory.
It
is
proposed
that
STSUs
have
weak
bargaining
positions
due
to
the
imperfections
of
markets
for
immature
technology,
caused
by
limited
thickness
of
the
markets,
asymmetric
information,
high
uncertainty
and
high
transaction
costs.
To
improve
this
bargaining
position,
and
enhance
the
probability
of
becoming
profitable,
STSUs
need
to
build
advantageous
appropriability
regimes
and
explorative
complementary
asset
positions.
An
advantageous
appropriability
regime
must
balance
between
the
protection
and
transferability
of
STSUs’
technologies.
In
order
to
optimize
the
explorative
complementary
asset
position
STSUs
need
to
focus
on
building
up
competences
for
combining
the
right
explorative
assets
–
including
scientific
research,
process
innovative,
product
innovative
(technical
or
functional
application),
and
aesthetic
design
–
and
managing
the
alliances
from
which
these
assets
stem.
The
findings
are
arranged
in
a
proposed
‘Exit
strategy
decision
&
action
flow
chart’
targeted
towards
STSUs
bound
to
profit
from
outright
technology
sale
and
thus
focuses
on
the
earlier
phases
of
the
innovation
process. |
