Reading Assignments

Potential modulations along carbon nanotubes, Dekker et al

Room-temperature transistor based on a single carbon nanotube

February 13, 2001

In addition to the Sunmicrosystems, Inc. case:

Readings: D.J. Teece, "Capturing Value from Technological Innovation: Integration, Strategic Partnering, and Licensing Decisions" (particularly through p. 301), chap. 19 from Managing Strategic Innovation and Change, New York: Oxford University Press, 1997. [in course reading packet] G.A. Moore, "High-Tech Marketing Illusion" and "High-Tech Marketing Enlightenment" (particularly pages 30-53), chaps. 1 & 2 from Crossing the Chasm, NY: Harper, 1999. [in course reading packet]

Assignment Questions:

1. Is there a dominant design in server operating systems?

2. Is Linux on the same S-curve as, or a different S-curve than, Solaris?

3. Should the Solaris team be worried about Linux? About Microsoft?

4. Should Anil Gadre and his team change the Solaris strategy to account for recent events in the server operating system market? If so, then what changes should they make and why?

Recommended Reading:

For those interested in additional reading on competition where standards are important: C. Shapiro and H.R. Varian, "The Art of Standards Wars," California Management Review, Winter 1999; Arthur, B., "Increasing Returns and the New World of Business," Harvard Business Review, Jul-Aug 1996. [in course reading packet]

For those who are interested in more information about open source software: Mann, C.C., "Programs to the People," Technology Review, Jan-Feb 1999. [in course reading packet]

February 27, 2001

Topic: Managing alliances

Case: Millenium Pharmaceuticals, Inc. (A) [in course reading packet]

Reading: re-read Teece, D.J. "Capturing Value From Technological Innovation," pp. 294-300.

Guest: Frank Lee, Ph.D., Chief Technology Officer, Millennium Pharmaceuticals, Inc.

Recommended Reading: This site for those interested in basic information about biotechnology: http://www.bio.org/aboutbio/guide2000/guide00_toc.html

Assignment Questions:

1. Why do biotechnology firms exist at all? Why isn't biotechnology research done within existing pharmaceutical companies?

2. What constitutes a "good" alliance for Millennium? Is this different than for other biotechnology firms?

3. As CEO Marc Levin, would you pursue the Lundberg alliance?

March 13, 2001

Topic: R&D as a "real option"

Case: Genzyme/Geltex Pharmaceuticals Joint Venture [in course reading packet] UVA-F-1254

(NOTE: See below under "Courseware: Geltex spreadsheet" for Excel spreadsheet version of Exhibits 3 and 4 from this case.)

Readings:

Luehrman, Timothy A., "Investment Opportunities as Real Options: Getting Started on the Numbers," Harvard Business Review, July-August 1998, pp. 51-67. [in course reading packet]

Mitchell, Graham R., and William F. Hamilton, "Managing R&D as a Strategic Option," Research*Technology Management, May-June 1998, pp. 15-22. [in course reading packet]

Assignment:

1. Consider the proposed Genzyme/Geltex venture. How does a joint venture compare to other possible forms of corporate affiliation such as acquisition or supplier-customer relationship?

2. How much should Genzyme be willing to pay for its interest in the joint venture? On what assumptions is this based?

3. What are the key assumptions that drive the venture's value? Are there any qualitative issues that might affect value?

4. What should Greg Phelps do?

Recommended Reading:

Bowman, E.H. and G.T. Moskowitz, "A Heuristics Approach to the Use of Options Analysis in Strategic Decision Making," Organization Science, forthcoming, particularly the discussion of Merck on pages 11-16. [in course reading packet]

Courseware: Geltex spreadsheet

March 30th, 2001

Topic: Optimizing Structures for Innovation

Guest: Nicholas Negroponte, Director of the Media Lab

Reading:

Background reading on the Media Lab

Nicholas Negroponte

http://www.media.mit.edu/people/nicholas/

Overview of the Lab

http://www.media.mit.edu/Information/Overview/

Research

http://gonzo.media.mit.edu/public/web/

Media Lab Goes Global

http://dailynews.yahoo.com/h/nm/20010215/tc/mit_report_dc_1.html

http://www.wired.com/news/business/0,1367,32799,00.html

http://www.wired.com/news/culture/0,1284,41358,00.html

April 3rd, 2001

Topic: Protecting Intellectual Property

Guest: Hon. Gerry Mossingoff, Former U.S. Patent Commissioner under President Reagan, where he initiated the computerization of the patent system and carried out studies of many of the world's patent systems correlating them to economic and innovative success in those countries.

Reading: Article 1, Sec. 8 of the The U.S. Constitution states that: The Congress shall have Power...To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries. The central question for Tuesday will be: "How close to optimal is the present patent system from the standpoint of optimizing innovation."

Questions: 1] tradeoffs between a grant of exclusivity to a set of individuals who happen to be the first to invent and the desire of society for optimally efficient development of technology. 2] Tradeoff between the desire to protect any invention and the filing of trivial inventions like 'one click internet purchases.' For preparation for Tuesday I would like to ask everyone to be familiar with the 1] Basis and origin of the patent system. 2] Specifics of the Dole-Baye provision, cited by many as a key driver for innovation over the last 10 years in this country.

Follow links at: http://supreme.lp.findlaw.com/constitution/article01/39.html

http://www.cogr.edu/bayh-dole.htm

April 24th, 2001

Topic: Competition and Investment Along Technological Trajectories

Case: Level (3) Communications in 2001: The "Pivotal Year"

Level (3)

Recommended Reading: For the text of an interview with Level (3) CEO James P. Crowe, click here:

http://www.totaltele.com/view.asp?Arti cleID=37658&pub=newci

Assignment Questions:

1. Evaluate Level (3)'s strategy.

2. Will Level (3) be able to profitably price below its rivals? Under what circumstances?

3. Which types of technological advance favors Level (3) over its rivals? Are there any types of technological advances that favor its rivals over Level (3)?

4. How, if at all, should CEO James Crowe alter the firm's straegy?