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Finding Fertile Ground: Identifying Extraordinary Opportunities for New Ventures by Scott A. Shane

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Chapter 7. Managing Intellectual Property

Introducing a product or service that meets a market need is a necessary, but not sufficient, condition for success as a technology entrepreneur. To be successful, you must also protect your innovative new products and services against imitation. Otherwise, you will not capture the returns to your innovative activity, since the profits from introducing new products and services will flow to your competitors.

Unfortunately for technology entrepreneurs, protecting new products or services against imitation is not easy. Most new products and services are simple to copy, particularly for large established firms. Moreover, because established firms have many advantages over new firms—things like an established ...

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