The astute management of technology is essential for firms who wish to compete within the new economy. In this in-depth study, David Teece considers how firms can exploit technological innovation, protecting their intellectual capital, while staying ahead of the competition.

PART I: INTRODUCTION ; 1. The Knowledge Economy and Intellectual Capital Management ; PART II: FOUNDATIONS ; 2. Impact of Market Structure and Organizational Factors on Innovation ; 3. Governance Modes and Technological Innovation ; 4. Decision-making Processes and the Rate and Direction of Innovation (with J. Bercovitz and J. de Figueiredo) ; PART III: APPLICATIONS TO MANAGEMENT AND STRATEGY ; 5. Market Entry Strategies for Innovators: Avoiding Pyrrhic Victories ; 6. Imitation Strategies for Owners of Complementary Assets ; 7. Outsourcing and Insourcing Strategies for Innovators: Opportunities and Limits (with H. Chesbrough) ; 8. Understanding the Licensing Option (with P. Grindley and E. Sherry) ; PART IV: PUBLIC POLICY ; 9. Antitrust Analysis in High Technology Industries (with M. Coleman) ; APPENDICES: CASE STUDIES IN LICENSING AND CROSS-LICENSING ; A. The Semiconductor Industry (with P. Grindley and E. Sherry) ; B. The Glass Industry and the Pilkington Float Process (with E. Sherry and P. Grindley)

Teece's work provides an example of what can be achieved through high-quality analysis ... the thinking manager, as well as the student, will get much out of Teece's hardheaded approach to his subject matter, and there are significant lessons to be learned from the experience of innovating companies. All in all, this is a book to be strongly recommended.

`In today's competitive environment, the management of intellectual capital is at the core of every firm's success or failure. Teece's book is the best one I know of in treating this topic seriously and providing a useful framework for capturing the value from intellectual assets.' Professor Charles O'Reilly, Frank Buck Professor of Human Resource Management and Organizational Behavior, Stanford University `Only a few people seem to get it, and David Teece is surely one of them. The old economy provided businesses little opportunity to earn super normal returns. Teece's Managing Intellectual Capital helps unlock the potential all companies have to earn genuine rents from their intangible assets, particularly from their people whose unique skills and gifts remain seriously underutilized.' Craig B. Wynett, General Manager, Future Growth Initiatives, The Procter & Gamble Company `Teece expands considerably on his seminal thinking in the field of intellectual capital management, adding both breadth and depth to the study. His illustrative writing guides the reader, whether novice or expert, on a fascinating journey through the innovation process, blending Teece's customary scholarship on the subject with practical insights drawn from his experiences across industries. The study of intellectual capital management, whether from the vantage of value creation or value extraction, would be incomplete without mastery of Teece's latest contributions to this evolving field.' James P. O'Shaughnessy, Vice President, Rockwell `In Managing Intellectual Capital [David Teece] develops his central theme that knowledge assets underpin a company's competitive advantage, and that developing strategies and organisational forms to exploit those advantages is the key to effective "entrepreneurial governance". . . . This is a must read for anyone interested in both the conceptual foundation and the practical design of techniques for effective management of intellectual property.' Professor Mark Schankerman, Reader in Economics at the London School of Economics, and Research Fellow at the CEPR `Too often economists assume that organizational structures and processes have only a minimal role to play in shaping competition. In this intriguing new book David Teece reminds us that we cannot think about managing intellectual capital without carefully integrating insights from conventional economic analysis with a rigorous understanding of organizational capability. This is an important message with wide ranging implications for both academics and practicing managers. ' Rebecca Henderson, Eastman Kodak LFM Professor of Management, MIT Sloan School

Powerful and challenging analysis of competitive advantage in the new knowledge economy Explains the nature of intangible assets and the processes of innovation Looks at the organizational structures most likely to support innovation Evidence from IBM, Microsoft, and Sun Microsystems

David J. Teece is Professor of Business Administration and Director at the Institute of Management, Innovation, and Organization, Haas School of Business, University of California at Berkeley. Previous positions have included Director, Center for Research in Management (CRM), University of California, Berkeley (1983-1994); and Visiting Fellow at St Catherine's College, Oxford University and Oxford Institute for Energy Studies (Spring 1989).

Powerful and challenging analysis of competitive advantage in the new knowledge economy Explains the nature of intangible assets and the processes of innovation Looks at the organizational structures most likely to support innovation Evidence from IBM, Microsoft, and Sun Microsystems