A Firm Has an Innovation That Has Weak Patent Protection

question 41

Multiple Choice

A firm has an innovation that has weak patent protection but its exploitation requires a number of complementary resources that it does not possess.Its best mode of exploiting the innovation is likely ot be:

• A)Licensing.
• B)Joint venture.
• C)Internal commercialization.
• D)Acquiring a company that does possess the required complementary resources.

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Definitions:

Cash Inflows

Cash inflows refer to the movement of money into a company's accounts from various sources, including sales, financing, or investment.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Net Present Value

A financial metric that calculates the value of future cash flows in today’s dollars, assessing profitability of investments or projects.

Expected Future

Anticipating the conditions that will be in the future, often used in planning and forecasting in various contexts.