This not only allows the firm to capture all the benefits from its
own R&D, but also prevents competitors from benefitting from it. The mindset of firms
in the closed innovation model is that to profit from R&D, the firm must come up with its
own discoveries, develop them on its own, and control the distribution channels. Strength
in R&D is equated with a high likelihood of benefitting from first-mover advantages. Firms
following the closed innovation model, however, are much more likely to fall prone to the
not-invented-here syndrome: 73 “If the R&D leading to a discovery and a new development
project was not conducted in-house, it cannot be good.”