Creating value isn't enough - you also need to capture some of the value you create.
To be successful, innovation is not just about value creation, but value capture.
A business model describes how your company creates, delivers and captures value.
We're living at a time when attention is the new currency. Those who insert themselves into as many channels as possible look set to capture the most value.
As I noted in my Nobel lecture, an early insight in my work on the economics of information concerned the problem of appropriability - the difficulty that those who pay for information have in getting returns.
If companies don't think systemically enough - if they try to capture too much of the value - eventually, innovation moves somewhere else.
In a two-sided market, focusing on the customer will increase a business's ability to extract value from the supply side.
If the seller has a player that they think is going to have a lot of value, they're aware of it, protect that value. You have to go get it. That's the way the trade market works.
There are riches to be found simply by capturing the value released through others' disruptive breakthroughs.
