Important overall objectives of this course are to align the theory and practice of strategy, on the one hand, and more specifically to align core themes in innovation strategy with strategies for business and market development, on the other. The course aims to provide students with systematic analytical and practice-oriented insights into firm strategy with special emphasis on issues related to innovation strategy, business dynamics and market development. This objective is achieved through three approaches: first, introducing complementary theories and tools relating strategy to innovation in knowledge-intensive firms and industries; second, investigating in depth key topics within the scope of the course; and third, analysing business practice through case studies, exercises, simulations and presentations by and discussions with business practitioners.

Topics include core issues in business and corporate strategy (e.g. strategic positioning, building strategic competencies and strategic alliance, make-buy decisions, the dynamics of corporate strategy and structure) and more specific questions relating to innovation, business and industry dynamics and market development (see below). These topics are analysed by applying several theoretical approaches, including an industrial organization perspective, a resource- or competence-based perspective and a transaction cost perspective. These theories are considered complementary rather than mutually exclusive ways of approaching the strategic issues raised. The focus is primarily on innovative and knowledge-intensive firmsin high-tech manufacturing industries (e.g. electronics, precision instruments, pharmaceuticals) as well as in the new services sectors (e.g. software development and Internet services).

Among the main issues raised in the course are the following:

• What are the advantages and disadvantages of being first on the market? What determines who “wins” and who “loses” from investments in innovation?
• What is the role of core capabilities in product and innovation strategies? How do these strategies relate to market development and the underlying market research?
• What factors should firms take into consideration when engaging in partnering and contracting for research and development? How can cooperating firms create a framework within which they can successfully develop products of commercial value?
• What challenges and opportunities do firms confront in managing environmentally sustainable innovation strategies?
• How do recent trends towards globalization, modularization and networking transform the corporate strategies of large multinational companies – especially as related to innovation and corporate venturing?