So we've discussed some of the key factors for growth through innovation. We've discussed in quite detail now about how you might develop a innovative capability within your organization. But equally important once again is the ability to appropriate the gains from innovation. Consider the following, perhaps you have an innovation and it creates a certain amount of value represented by the pie in this diagram. At the end of the day, that value is shared with others. It's shared hopefully with your customers, who gain more value from the innovation. Perhaps with your suppliers and we should recognize, that maybe imitators and competitors will also appropriate some of that value that you've created as the innovator. So the big question is, how big is the slice of pie as the innovator that I capture when I create value? So, what drives a firm's ability to appropriate value? Well, I encourage you to think about two broad classes of considerations here. The first is the strength of the intellectual property regime. Your ability to protect your intellectual property. Now, this depends on a number of factors which we'll talk about more later, but, in general, you can think about things like the nature of the legal system. Do I have a patent protection on this or a copyright? But, also the nature of the technology and the market itself which might provide protection beyond even a patent or some other legal protection. The second thing we wanna think about are complementary assets. These are these things necessary to exploit the innovation. This could be marketing, distribution channels, maybe a complementary technology that is require to make an advance with this innovation. Who controls these complementary assets has a very big opportunity to take a value from the innovation that's created. So from the innovator's perspective, you need to think about not only can you protect your intellectual property, but do you have some control over these important complementary assets as well?