ABSTRACT
If imitability of an invention is low and complementary assets are important and scarce, one of two things could happen. If the inventor also has the complementary assets, then it stands to make lots of money from its invention. Effectively, firms with scarce and important complementary assets are often the ones that profit the most from inventions, whether they were the inventors or followers. If an invention is difficult to imitate and complementary assets are scarce but important, the inventor can pursue one of two strategies: Block or team up. If the inventor also owns the scarce complementary assets, it can block rivals and potential new entrants from having access to either. The costs of acquiring an inventor fall into two groups: the amount paid to the inventor, and the cost of the assimilation of the inventor by the acquirer.
