Most goods today are designed and produced by value chains of firms. The value that a value chain... more Most goods today are designed and produced by value chains of firms. The value that a value chain as a whole captures is distributed among its members through bargaining. For complex products, such bargaining will consist of several individual negotiations, typically structured according to the hierarchical organization of the respective industry. We introduce the notion of ?bargaining structure? to describe the sequence and participants of these individual negotiations. Using cooperative game theory, in particular the Shapley value and extensions of it, we show how bargaining structure affects the distribution of value among the constituent firms of the value chain. Positions in the bargaining structure most conducive to value capture are those where large complementarity gains are realized, and split among an ideally small number of negotiators. Since the bargaining structure of a value chain is to some extent malleable, firms have an incentive to shape it in such a way as to opti...
Abstract: This paper provides a quantitative study (N = 268) of patterns of free revealing of fir... more Abstract: This paper provides a quantitative study (N = 268) of patterns of free revealing of firm-developed innovations within embedded Linux, a type of open source software (OSS). I find that firms, without being obliged to do so, contribute many of their own developments back to public embedded Linux code, eliciting and indeed receiving informal development support from other firms. That is, they perform a part of their product development open to the public—an unthinkable idea for traditionally-minded managers. Such openness obviously entails the challenge of protecting one’s intellectual property. I find that firms address this issue by revealing selectively. They reveal, on average, about half of the code they have developed, while protecting the other half by various means. Revealing is strongly heterogeneous among firms. Multivariate analysis can partly explain this heterogeneity by firm characteristics and the firm’s purpose behind revealing. An analysis of reasons for revealing and of the type of revealed code shows that different types of firms have different rationales for openness. Implications for management are that the conflict between downsides and benefits of openness appears manageable. Provided selective revealing is practiced deliberately, the opportunities of open development dominate. Key words: open source software, embedded Linux, free revealing, appropriation, IP protection
Unter bestimmten Bedingungen wird auf einem unregulierten Markt ein okonomisch effizientes Result... more Unter bestimmten Bedingungen wird auf einem unregulierten Markt ein okonomisch effizientes Resultat erreicht. In der Realitat sind diese Bedingungen allerdings zumeist nicht erfullt, da verschiedene Arten von Marktversagen auftreten. In solchen Fallen konnen staatliche Eingriffe helfen, ein gegenuber dem unregulierten Markt verbessertes Resultat zu erreichen. Allerdings sind solche Eingriffe nicht unproblematisch — die Existenz eines Problems bedeutet noch nicht, dass auch eine Losung dazu existiert.
Die Entwicklung und der Einsatz von Software-Systemen, gleich welcher Art, finden niemals im rech... more Die Entwicklung und der Einsatz von Software-Systemen, gleich welcher Art, finden niemals im rechtsfreien Raum statt und stehen immer in gewisser Wechselwirkung mit wirtschaftlichen Interessen aller Beteiligten. Die Betrachtung technischer Aspekte von Software-Entwicklung und Software-Einsatz lasst sich daher nicht vollstandig von rechtlichen (insbesondere lizenzrechtlichen) Rahmenbedingungen losen, und meist sind es wirtschaftliche Faktoren, die die Modifikation und Fortentwicklung der technischen Prozesse in diesem Bereich auslosen. Umgekehrt ist naturlich auch zum Verstandnis der rechtlichen Probleme und der wirtschaftlichen Auswirkungen die Kenntnis dieser technischen Aspekte notig.
Synthetic biology holds great promise for a number of application areas, and in particular for hu... more Synthetic biology holds great promise for a number of application areas, and in particular for human health care. It may help to address the challenge of ever increasing innovation cost that the pharmaceutical industry is currently facing, with the number of new drugs approved per billion US dollar spent on research and development halved every 9 years since 1950. In this book chapter we review the challenges that the pharmaceutical industry is confronted with, present and analyze examples of applications of synthetic biology in this field, and discuss potential changes to the industry’s intellectual property management that the advent of synthetic biology might bring about.
Most goods today are designed and produced by value chains of firms. The value that a value chain... more Most goods today are designed and produced by value chains of firms. The value that a value chain as a whole captures is distributed among its members through bargaining. For complex products, such bargaining will consist of several individual negotiations, typically structured according to the hierarchical organization of the respective industry. We introduce the notion of ?bargaining structure? to describe the sequence and participants of these individual negotiations. Using cooperative game theory, in particular the Shapley value and extensions of it, we show how bargaining structure affects the distribution of value among the constituent firms of the value chain. Positions in the bargaining structure most conducive to value capture are those where large complementarity gains are realized, and split among an ideally small number of negotiators. Since the bargaining structure of a value chain is to some extent malleable, firms have an incentive to shape it in such a way as to opti...
Abstract: This paper provides a quantitative study (N = 268) of patterns of free revealing of fir... more Abstract: This paper provides a quantitative study (N = 268) of patterns of free revealing of firm-developed innovations within embedded Linux, a type of open source software (OSS). I find that firms, without being obliged to do so, contribute many of their own developments back to public embedded Linux code, eliciting and indeed receiving informal development support from other firms. That is, they perform a part of their product development open to the public—an unthinkable idea for traditionally-minded managers. Such openness obviously entails the challenge of protecting one’s intellectual property. I find that firms address this issue by revealing selectively. They reveal, on average, about half of the code they have developed, while protecting the other half by various means. Revealing is strongly heterogeneous among firms. Multivariate analysis can partly explain this heterogeneity by firm characteristics and the firm’s purpose behind revealing. An analysis of reasons for revealing and of the type of revealed code shows that different types of firms have different rationales for openness. Implications for management are that the conflict between downsides and benefits of openness appears manageable. Provided selective revealing is practiced deliberately, the opportunities of open development dominate. Key words: open source software, embedded Linux, free revealing, appropriation, IP protection
Unter bestimmten Bedingungen wird auf einem unregulierten Markt ein okonomisch effizientes Result... more Unter bestimmten Bedingungen wird auf einem unregulierten Markt ein okonomisch effizientes Resultat erreicht. In der Realitat sind diese Bedingungen allerdings zumeist nicht erfullt, da verschiedene Arten von Marktversagen auftreten. In solchen Fallen konnen staatliche Eingriffe helfen, ein gegenuber dem unregulierten Markt verbessertes Resultat zu erreichen. Allerdings sind solche Eingriffe nicht unproblematisch — die Existenz eines Problems bedeutet noch nicht, dass auch eine Losung dazu existiert.
Die Entwicklung und der Einsatz von Software-Systemen, gleich welcher Art, finden niemals im rech... more Die Entwicklung und der Einsatz von Software-Systemen, gleich welcher Art, finden niemals im rechtsfreien Raum statt und stehen immer in gewisser Wechselwirkung mit wirtschaftlichen Interessen aller Beteiligten. Die Betrachtung technischer Aspekte von Software-Entwicklung und Software-Einsatz lasst sich daher nicht vollstandig von rechtlichen (insbesondere lizenzrechtlichen) Rahmenbedingungen losen, und meist sind es wirtschaftliche Faktoren, die die Modifikation und Fortentwicklung der technischen Prozesse in diesem Bereich auslosen. Umgekehrt ist naturlich auch zum Verstandnis der rechtlichen Probleme und der wirtschaftlichen Auswirkungen die Kenntnis dieser technischen Aspekte notig.
Synthetic biology holds great promise for a number of application areas, and in particular for hu... more Synthetic biology holds great promise for a number of application areas, and in particular for human health care. It may help to address the challenge of ever increasing innovation cost that the pharmaceutical industry is currently facing, with the number of new drugs approved per billion US dollar spent on research and development halved every 9 years since 1950. In this book chapter we review the challenges that the pharmaceutical industry is confronted with, present and analyze examples of applications of synthetic biology in this field, and discuss potential changes to the industry’s intellectual property management that the advent of synthetic biology might bring about.
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Papers by Joachim Henkel