Question Consider, "EXAMPLE Genentech and City of Hope" at page 389 of Business and Its Environment, Second Custom Edition. Explain how Figure 14-2 at page 383, and the concepts described in it, apply to the EXAMPLE's facts. Elgure 14-2 Appropriability of Returns Cost of replication Low High Loose Weak Moderate Intellectual appropriability appropriability property protection (rights and enforcement) Tight Moderate Strong appropriability appropriability ExamPLE Genentech and City of Hope In 1976 as a fledgling company, Genentech entered into a 16-page contract that stated, "Should Genentech license any contract with the City of Hope Medical Center (COH) under third party under any patent acquired by it hereunder, then which two COH researchers agreed to splice a human gene Genentech shall secure from that party and pay to City of into bacteria to synthesize the DNA for human insulin - In Hope the same royalty City of Hope would have received had 1978 the scientists were successful, resulting in the first Genentech itself carried out the licensed activity."