Result of the innovation archetypes

The nature of the innovation process in the four archetypes and the requirements for successful innovation in the archetypes have a large influence on competition in different types of industries.In science-based and engineering-based innovation，firm performance is closely correlated to strong proprietary knowledge.In many science-based and engineering-based industries，companies that have large portfolios of high-quality patents are extremely difficult to displace，making it even more challenging for economies like China to catch up.

In contrast，where industries rely on customer-focused and efficiency-driven innovation，patentable knowledge is not a key requirement for success.It is the firms that get new ideas or technologies to customers first that tend to capture the larger share of industry profits.In customer-focused and efficiencydriven innovation，the end consumer captures a significant amount of the value created by innovation in the form of better offerings，lower prices，or both.

The nature of innovation in an industry can also shape industry structure.Companies that build strong patent portfolios have tremendous advantages because they can make additional innovations based on existing intellectual property and trade their patents to get access to other innovations.The effect can be observed in the semiconductor design business，where the top three global players have not changed for two decades.Sometimes，companies with strong intellectual property can use their patents to expand the market.Tesla is attempting to accelerate growth of the electric vehicle market by licensing its patents for free.