Ownership-specific advantages

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Ownership-specific advantages

Property rights or intangible assets, including patents, trademarks, organizational and marketing expertise, production technology, and management and general organizational abilities, that form the basis for a company's advantage over other firms.

Ownership-Specific Advantages

Intangible assets in a company, such as intellectual property, property rights, brand recognition, and other areas. Owning the copyright to a superior product is an example of an ownership-specific advantage, as is an exceptionally good organizational system. Ownership-specific advantages are less quantitative ways a company is able to remain competitive against companies in the same industry. That is, the idea behind ownership-specific advantages states that there is more to competition that simply providing the best price. Intangibles also play a significant role.
References in periodicals archive ?
The article specifies how the creation of a single European market alters the locational advantages of producing in Europe and strengthens the ownership specific advantages of European Community firms.
The propensity of a firm to engage in foreign production is influenced by the combination of ownership specific advantages, internalisation opportunities and locational advantages of the target market (Dunning, 1981).
This increased innovative activity will offer opportunities for the accumulation of ownership specific advantages by firms of European Community origin.
Economic integration brings about changes in the distribution of locational advantages across markets and in the distribution of ownership specific advantages across international firms.
On the other hand, the dynamic effects of further integration on R&D activities and innovation potential will strengthen the ownership specific advantages of multinational firms of Community origin.
This will give us an indication of the sectors in which Japanese firms have strong ownership specific advantages which they can combine with any emerging locational advantages of European production to engage in foreign direct investment.
A good indication of the potential ownership specific advantages enjoyed by firms is to look at their comparative advantage in innovative activity.