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Collaboration as an Intangible Asset

Harvard Business Review

So it is with most breakthrough innovations and banner financial years. Interestingly, intangible assets are all the rage these days on Wall Street. There is no line on the balance sheet for "ability to innovate" or "skill at managing brand." If ego and time allow, the list can be quite long.

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Blockbuster Becomes a Casualty of Big Bang Disruption

Harvard Business Review

The shutdown will be completed by early 2014, bringing to a close a dramatic story of rise and fall at the hands of disruptive technological innovation, or what we have called “ big bang disruption.” As recently as 2002, the company had a market value of $5 billion. The Blockbuster-Netflix skirmish is a case in point.

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Filing for a Patent Versus Keeping Your Invention a Trade Secret

Harvard Business Review

For many years, beginning in 1942, Premarin was the only hormone replacement therapy drug on the market derived from a natural source. A series of patents were issued on the drug in the 1940s, but long after they had expired, there were still no generic competitors on the market. Such was not the case.

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What’s Driving Superstar Companies, Industries, and Cities

Harvard Business Review

We focus on economic profit rather than revenue size, market share, or productivity growth because these other metrics risk including firms that are simply large and may not create economic value. Acquisitions, bold investment in intangible assets, and attracting talent can ultimately make the difference.

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The Answer to Short-Termism Isn’t Asking Investors to Be Patient

Harvard Business Review

Too many companies prioritize quarterly earnings over long-term innovation, human capital investment, and brand development, and many people believe short-term shareholders are to blame. Gathering information on a firm’s intangible assets is costly, and so not worth doing if you own only a tiny bit of stock in a company.

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Startups Could Fundamentally Change the Way Big Investors Operate

Harvard Business Review

Innovation has the potential to transform the investment industry. Yet the world’s largest funds are closed off from these innovations. Research we have collected in recent months shows that pension funds, sovereign wealth funds, and endowments expect imminent breakthrough innovations in investment technology.

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How Software Is Helping Big Companies Dominate

Harvard Business Review

They’re more productive , more profitable , more innovative , and they pay better. “How long does it take for her to interact with a market that isn’t nearly monopolized?” Walmart went from a 3% share of the general merchandise retail market in 1982 to over 50% today. Andrew Brookes/Getty Images.