My dissertation empirically analyzed managerial challenges in capturing value from innovation. I motivated this research topic with the famous case of EMI's introduction of the computerized axial tomography (CAT) scanner (Martin, 1984). In 1972 EMI developed the first CAT scanner for generating cross-sectional views of the human body, considered by many to be the greatest advance in radiology since the discovery of X-rays in 1895. Even though EMI developed groundbreaking technology and was able to offer the first working product, it dropped out of the market completely after a few years. This case makes clear that firms have to excel in creating value—for example, by developing new technology that fits customer needs— as EMI did—as well as capturing value by translating created value into profits—as EMI failed to do—to be ultimately successful.
KeywordsDiscrete Choice Experiment Managerial Challenge Marketing Function Patent Portfolio Competitive Threat
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