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dc.contributor.authorBaldwin, Carliss Young
dc.contributor.authorHenkel, Joachim
dc.date.accessioned2014-01-27T18:16:05Z
dc.date.issued2014-01-27
dc.identifier.citationBaldwin, Carliss Y., and Joachim Henkel. "Modularity and Intellectual Property Protection." Strategic Management Journal 36, no. 11 (November 2015): 1637–1655. (Was Harvard Business School Working Paper, No. 14-046, December 2013. Revised January 2014.)en_US
dc.identifier.urihttp://nrs.harvard.edu/urn-3:HUL.InstRepos:11591705
dc.description.abstractModularity is a means of partitioning technical knowledge about a product or process. When state-sanctioned intellectual property (IP) rights are ineffective or costly to enforce, modularity can be used to hide information and thus protect IP. We investigate the impact of modularity on IP protection by formally modeling the threat of expropriation by agents. The principal has three options to address this threat: trust, licensing, and paying agents to stay loyal. We show how the principal can influence the value of these options by modularizing the system and by hiring clans of agents, thus exploiting relationships among them. Extensions address screening and signaling in hiring, the effects of an imperfect legal system, and social norms of fairness. We illustrate our arguments with examples from practice.en_US
dc.language.isoen_USen_US
dc.relation.isversionofhttp://onlinelibrary.wiley.com/doi/10.1002/smj.2303/fullen_US
dash.licenseLAA
dc.subjectModularityen_US
dc.subjectvalue appropriationen_US
dc.subjectintellectual propertyen_US
dc.subjectrelational contractsen_US
dc.subjectclansen_US
dc.titleModularity and Intellectual Property Protectionen_US
dc.typeJournal Articleen_US
dc.description.versionVersion of Recorden_US
dc.relation.journalHarvard Business School working paper series # 14-046en_US
dc.relation.journalStrategic Management Journalen_US
dash.depositing.authorBaldwin, Carliss Young
dc.date.available2014-01-27T18:16:05Z
dc.identifier.doi10.1002/smj.2303/full*
dash.contributor.affiliatedBaldwin, Carliss


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