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In which of the following is a firm with a patented technology LEAST likely to appropriate the gains from the innovation? 1. Necessary distribution networks

In which of the following is a firm with a patented technology LEAST likely to appropriate the gains from the innovation?

1. Necessary distribution networks are tightly held by a single firm (not the innovator)

2. Distributors are highly dependent on the technology

3. Necessary distribution networks are characterized by intense rivalry among several players

4. The firm may forward integrate into distribution

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