Showing papers by "David J. Teece published in 1992"

Competition, cooperation, and innovation: Organizational arrangements for regimes of rapid technological progress

Abstract: Discussions of the link between firm size and innovation are outmoded because the boundaries of the firm have become fuzzy in recent decades. Strategic alliances — constellations of bilateral agreements among firms — are increasingly necessary to support innovative activities. Such alliances can facilitate complex coordination beyond what the price system can accomplish, while avoiding the dysfunctional properties sometimes associated with hierarchy. Antitrust law and competition policy need to recognize that these new organizational forms are often the functional antithesis of cartels, though they may have certain structural similarities. A more complete understanding of bilateral contracts and agreements ought to reveal when and how cooperation can support rather than impede innovation and competition.

Foreign Investment and Technological Development in Silicon Valley

Abstract: This article examines foreign investment in high-technology industries in Silicon Valley. It describes the extent of this investment and then explores the implications for the future global role of the American economy. Significant foreign investment signals the inability of U.S. high-tech firms to grow to maturity without infusion of capital and other resources from elsewhere. The solution is not to impede the flow of foreign investment, but in building the infrastructure—education, skills, savings, employee commitment, and the like—needed to support the development of later-stage capacities in the innovation process. Failure to do so may enable firms outside the United States to disproportionately profit from the pioneering activity for which "the Valley" is so famous.

Rule of Reason Analysis of Horizontal Arrangements: Agreements Designed to Advance Innovation and Commercialize Technology

Abstract: The development, commercialization, and diffusion of product and process technologies have long been the most fundamental competitive forces in advanced industrial economies, generating economic growth, enhancing consumer welfare, and in the process, constantly challenging and frequently overturning the established order within and among industries. If one calibrates competition by the intensity of rivalry among industry participants, then innovation is unquestionably the major force driving competition.