COMM 320 Chapter Notes - Chapter 7: Learning Curve, W. M. Keck Observatory, Trade Secret
Document Summary
Intellectual property: the core ideas about the entrepreneur"s new product or service. Important for entrepreneurs to protect this because most of the time, the only advantage they have over large existing firms lies in their product development. A way to counteract this is to quickly screen many opportunities and select the one that has the best chance of succeeding. It is important to also limit preliminary investments into a product: luck is an important part of product development. It is very easy to imitate entrepreneurs" intellectual property, which is one of the reasons why they often don"t reap big rewards for their ideas. Helps to raise capital by demonstrating the existence of a competitive advantage. Provides a monopoly right by blocking people from doing the same thing. Prevents a second party from using the invention as a trade secret. Can be circumvented, with competitors accomplishing the same goal, but avoiding the patent protection.
