KODAK VS FUJIFILM incumbent curse

In the dynamic landscape of the knowledge economy, managing technological innovation amid disruptive changes presents a formidable challenge for incumbent firms. This study examines the contrasting innovation strategies of Fujifilm and Kodak, two major players in the photography industry, using USPTO patent data from 2003 to 2021, and demonstrates the importance of strategic openness in fostering firm adaptability and long-term success. We focus on specific patent metrics, such as backward citation lag (BCL), self-citation rate (SCR), scientific literature citation rate (SLC), knowledge depth (DEP), and scope of knowledge search (SCP), to assess each company's approach to open versus closed innovation. Our findings illuminate Fujifilm’s strategic adaptation to digital photography disruption through an open innovation model characterized by a lower SCR and BCL, a higher SC, and a broader SCP, suggesting a more extensive integration of external knowledge and scientific advancements. Conversely, Kodak’s higher SCR, longer BCL, narrower SCP, and deeper DEP indicate a reliance on internal capabilities and established technologies, which may have hindered its adaptive capacity in the rapidly evolving market. This study enriches the field of the knowledge economy by illustrating how patent metrics serve as indicators of strategic adaptation to technological changes, highlighting the effectiveness of open innovation in fostering firm adaptability and competitive success.