Co-specialized complementary assets

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Cospecialized assets are those for which there is a bilateral dependence

See M5-Strategy-S6 - Summary Teece - Complementary assets

Co-specialized assets lead to hostile situations due to mutual dependencies.

Examples of specialized assets depending on the innovation:

  • Embedded DVD-players in PC's
  • The cottage industry of accessories made for the iPod media device.

Examples of an innovation depending on the specialized assets:

  • EMI Laboratories' innovation of the computerized axial tomography scanner and its failure due to rival General Electric's distribution and marketing expertise.

Examples of co-specialized assets (innovation and asset depend on each other)

  • Strong biotechnology patents and the marketing and distribution resources of the large pharmaceuticals.

You never want to integrate verticals unless you really have to. See

Article of Oliver Williamson