Class 6: Strategic decisions early in the life of an innovation
The case illustrates how, early in the life of an innovation when there is a lot of uncertainty, firms have to make some bets. A firm's innovation strategy plays a major role in not only increasing the chances of the bet but also in increasing the payoffs.
Reading: Chapter 2 pages 31-41; Chapter 7
Case: Biotechnology Strategies in 1992 (HBS) or Human Genome Sciences (UMBS case)
(1) For the Biotechnology Strategies case: You are in 1990. Which of these firms would you invest in?
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