The market for innovation: Implications for corporate strategy

The strengthening of intellectual property protection in the United States has important implications for corporate strategy. Increasingly, firms are both selling intellectual property that they have developed and are purchasing it from other firms. The growth of a secondary market for innovation implies a new business model based on the ability of firms to develop strategies that can market and protect their innovations and efficiently access technologies developed externally. This article describes both the opportunities and risks of firms seeking to link their business strategies with the increasingly important market for innovation.