Dynamic Capabilities with David Teece

This insightful and engaging discussion from the 2026 Berkeley Open Innovation Seminar features expertise from David Teece (and the AI twin SudoDavid interacting with a real audience), Henry Chesbrough, Agnes Radziwon, Veronika Kentosova, and Todd Brous.

Thanks to the following:

University of California, Berkeley, Haas School of Business

Syddansk Universitet

World Open Innovation Community

This episode is posted with permission from Dr. Agnieszka Radziwon of the Berkeley Open Innovation Seminar.

Professor David J. Teece is the pioneer of the dynamic capabilities framework, a leading global expert on innovation and strategy, and the world's most cited scholar in business and management, with a scholarly and executive career spanning five decades.

To learn more about the concepts discussed in this video, here are some foundational readings by Professor Teece, and to the paper by Dr. Henry Chesbrough referenced in the discussion:

Dr. Henry Chesbrough, Open Innovation: The New Imperative for Creating and Profiting from Technology (2003)

Dr. David Teece and Dr. Gary Pisano, The Dynamic Capabilities of Firms: An Introduction, Industrial and Corporate Change (1994)

Dr. David Teece, Competition, cooperation, and innovation: Organizational arrangements for regimes of rapid technological progress, Journal of Economic Behavior & Organization (1992)

This episode was created with AI tools.

Notebook LM analyzed an upcoming paper from Professor David J. Teece, "Dynamic Competition, volume 1: Revamping the Economic Foundations of Competition Policy" (forthcoming in the Cambridge Elements series on Reinventing Capitalism).

The result was an informed AI conversation on topics in the paper, including competition policy, antitrust, economic schools of thought and approaches, innovation, and complexity thinking.

The result should offer useful insights for scholars and students, as well as boards and managers.

Listen and explore what AI tools can produce as of October 2025.

To learn more about the concepts discussed in this episode, here are some links to foundational readings by Professor Teece, the world's most cited scholar in business and management.

Understanding Dynamic Competition: New Perspectives on Potential Competition, “Monopoly,” and Market Power (May 22, 2025). Available at SSRN: ⁠https://ssrn.com/abstract=5356023⁠ or ⁠http://dx.doi.org/10.2139/ssrn.5356023⁠

Integrating innovation concepts into the merger control context. With Gönenç Gürkaynak. Journal of European Competition Law & Practice, 2025; lpaf039, ⁠https://doi.org/10.1093/jeclap/lpaf039⁠

Dynamic Capabilities and Organizational Agility: Risk, Uncertainty, and Strategy in the Innovation Economy. With Margaret Peteraf and Sohvi Leih. California Management Review, August 1, 2016, Volume 58, Issue 4, ⁠https://doi.org/10.1525/cmr.2016.58.4.13⁠

Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance, Strategic Management Journal, August 7, 2007, ⁠https://doi.org/10.1002/smj.640⁠

Profiting from Technological Innovation: Implications for integration, collaboration, licensing and public policy, Research Policy 15:6 (December 1986), 285– 305 (Selected by the editors as one of the best papers published by Research Policy over the period 1971–1991. Noted in 1999 as the most cited paper ever published in Research Policy.) https://doi.org/10.1016/0048-7333(86)90027-2

This mini-episode was created with AI tools. Utilizing Professor David Teece's published works, Steve Outtrim of aiLevelUp facilitated the generation of a brief review of the dynamic capabilities framework narrated by a virtual "SudoDavid."

Here, SudoDavid discusses the historical origins of dynamic capabilities as a shift in understanding on competitive advantage, the three key pillars of the framework: sensing, seizing, and transforming*, and practical applications for managers.

Listen and explore what AI tools can produce as of September 2025.

(*Of note, the AI tools replaced the term "transforming" with "reconfiguring" as the third pillar of dynamic capabilities in this episode.)

To learn more about the concepts discussed in this episode, here are some links to foundational readings by Professor Teece.

Dynamic Capabilities and Strategic Management (with Gary Pisano and Amy Shuen), Strategic Management Journal 18:7 (August 1997), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7%3C509::AID-SMJ882%3E3.0.CO;2-Z

Dynamic Capabilities and Organizational Agility: Risk, Uncertainty, and Strategy in the Innovation Economy. With Margaret Peteraf and Sohvi Leih. California Management Review, August 1, 2016, Volume 58, Issue 4, https://doi.org/10.1525/cmr.2016.58.4.13

Profiting from Technological Innovation: Implications for integration, collaboration, licensing and public policy, Research Policy 15:6 (December 1986), 285– 305, https://doi.org/10.1016/0048-7333(86)90027-2 (Selected by the editors as one of the best papers published by Research Policy over the period 1971–1991. Noted in 1999 as the most cited paper ever published in Research Policy.)

Reflections on “Profiting from Innovation, Research Policy, Volume 35, Issue 8, 2006, Pages 1131-1146, ISSN 0048-7333, https://doi.org/10.1016/j.respol.2006.09.009

This interview with Professor David Teece, conducted by Professor Karl Moore (McGill University Faculty of Management) covers topics broadly applicable in Silicon Valley and beyond, including how managers and firms can best understand their capabilities for success in competitive environments.

To learn more about the concepts discussed in this episode, here are some links to foundational readings by Professor Teece.

Dynamic Capabilities and Strategic Management (with Gary Pisano and Amy Shuen), Strategic Management Journal 18:7 (August 1997), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7%3C509::AID-SMJ882%3E3.0.CO;2-Z

Dynamic Capabilities and Organizational Agility: Risk, Uncertainty, and Strategy in the Innovation Economy. With Margaret Peteraf and Sohvi Leih. California Management Review, August 1, 2016, Volume 58, Issue 4, https://doi.org/10.1525/cmr.2016.58.4.13

Profiting from Technological Innovation: Implications for integration, collaboration, licensing and public policy, Research Policy 15:6 (December 1986), 285– 305, https://doi.org/10.1016/0048-7333(86)90027-2 (Selected by the editors as one of the best papers published by Research Policy over the period 1971–1991. Noted in 1999 as the most cited paper ever published in Research Policy.)

Reflections on “Profiting from Innovation, Research Policy, Volume 35, Issue 8, 2006, Pages 1131-1146, ISSN 0048-7333, https://doi.org/10.1016/j.respol.2006.09.009

There is a sad note to this remarkable interview from Unfiltered. As many are aware, Jake Millar tragically passed away in 2021. He was talented in many ways, and the conversation in this video highlights his abilities to bring about understanding on topics such as entrepreneurship, business education, innovation, and artificial intelligence. He is deeply missed.

For further information and reference, below are links to readings that Jake thoughtfully referenced in the video:

Dynamic Capabilities and Strategic Management (with Gary Pisano and Amy Shuen), Strategic Management Journal 18:7 (August 1997), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7%3C509::AID-SMJ882%3E3.0.CO;2-Z

Profiting from Technological Innovation: Implications for integration, collaboration, licensing and public policy, Research Policy 15:6 (December 1986), 285– 305, https://doi.org/10.1016/0048-7333(86)90027-2

Towards a Capabilities Checklist - A Panel from the First Annual DCI Conference

This informative panel discussion explores the linkages between #capabilities and #dynamiccompetition. The pointers offer guidance for students, corporate leaders, entrepreneurs, managers, policymakers, and legislators seeking to best foster innovation-driven competition for large-scale benefits.

Participants:

• Frédéric Jenny (OECD)
• David Teece (University of California, Berkeley)
• William Kovacic (George Washington University)
• Moderator: Anais Bauduin (Deloitte)

This panel was originally part of the First Annual Conference of the Dynamic Competition Initiative (DCI) at the European University Institute (Florence, Italy), April 13 and 14, 2023, and the episode is posted with the permission of DCI.For additional information on the Dynamic Competition Initiative, visit https://www.dynamiccompetition.com/

To learn more about the concepts discussed in this video, here are some links to foundational readings by Professor Teece.

Understanding Dynamic Competition: New Perspectives on Potential Competition, “Monopoly,” and Market Power (May 22, 2025). Available at SSRN: https://ssrn.com/abstract=5356023 or http://dx.doi.org/10.2139/ssrn.5356023

Integrating innovation concepts into the merger control context. With Gönenç Gürkaynak. Journal of European Competition Law & Practice, 2025; lpaf039, https://doi.org/10.1093/jeclap/lpaf039

Dynamic Capabilities and Organizational Agility: Risk, Uncertainty, and Strategy in the Innovation Economy. With Margaret Peteraf and Sohvi Leih. California Management Review, August 1, 2016, Volume 58, Issue 4, https://doi.org/10.1525/cmr.2016.58.4.13

Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance, Strategic Management Journal, August 7, 2007, https://doi.org/10.1002/smj.640

Profiting from Technological Innovation: Implications for integration, collaboration, licensing and public policy, Research Policy 15:6 (December 1986), 285– 305 (Selected by the editors as one of the best papers published by Research Policy over the period 1971–1991. Noted in 1999 as the most cited paper ever published in Research Policy.)

This episode was part of the 2021 Berkeley Haas MBA course, "Introduction to Dynamic Capabilities and Related Paradigms" taught by Professor David Teece (EWMBA 273.1).

For more information about Professor David Teece, the dynamic capabilities framework, and his insights on strategy, leadership, management, and business success — including in the tech and mobility sectors, go to ‪@DavidJ.Teece-official‬ or visit https://www.davidjteece.com/

To learn more about the concepts discussed, here are some links to foundational readings by Professor Teece.

* D. Teece, “Plotting Strategy in a Dynamic World” (with P. Raspin and D. Cox), Sloan Management Review, September 2020. https://sloanreview.mit.edu/article/plotting-strategy-in-a-dynamic-world/

* "Dynamic Capabilities and Strategic Management (with Gary Pisano and Amy Shuen), Strategic Management Journal 18:7 (August 1997), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7%3C509::AID-SMJ882%3E3.0.CO;2-Z

* "Dynamic Capabilities and Organizational Agility: Risk, Uncertainty, and Strategy in the Innovation Economy." With Margaret Peteraf and Sohvi Leih. California Management Review, August 1, 2016, Volume 58, Issue 4, https://doi.org/10.1525/cmr.2016.58.4.13

This episode was part of the 2021 Berkeley Haas MBA course, "Introduction to Dynamic Capabilities and Related Paradigms" taught by Professor David Teece (EWMBA 273.1).

For more information about Professor David Teece, the dynamic capabilities framework, and his insights on strategy, leadership, management, and business success — including in the tech and mobility sectors, go to ‪@DavidJ.Teece-official‬ or visit https://www.davidjteece.com/

To learn more about the concepts discussed, here are some links to foundational readings by Professor Teece.D. Teece:

“Plotting Strategy in a Dynamic World” (with P. Raspin and D. Cox), Sloan Management Review, September 2020. https://sloanreview.mit.edu/article/plotting-strategy-in-a-dynamic-world/

"Dynamic Capabilities and Strategic Management (with Gary Pisano and Amy Shuen), Strategic Management Journal 18:7 (August 1997), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7%3C509::AID-SMJ882%3E3.0.CO;2-Z

"Dynamic Capabilities and Organizational Agility: Risk, Uncertainty, and Strategy in the Innovation Economy." With Margaret Peteraf and Sohvi Leih. California Management Review, August 1, 2016, Volume 58, Issue 4, https://doi.org/10.1525/cmr.2016.58.4.13

This episode is part of the series Dynamic Capabilities for Success with Professor David Teece. In this recorded lecture series, Professor David Teece, creator of the dynamic capabilities framework, offers world-leading insights readily applicable to achieving success in #business, #leadership, #strategy, #entrepreneurship, and #management.

To learn more about the concepts discussed in this episode, here are some links to foundational readings by Professor Teece:

"Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, August 7, 2007, ⁠⁠https://doi.org/10.1002/smj.640⁠⁠

"The foundations of enterprise performance: Dynamic and ordinary capabilities in an (economic) theory of firms." The Academy of Management Perspectives, 28(4), 328–352. ⁠⁠https://doi.org/10.5465/amp.2013.0116⁠⁠

"Dynamic Capabilities and Organizational Agility: Risk, Uncertainty, and Strategy in the Innovation Economy." With Margaret Peteraf and Sohvi Leih. California Management Review, August 1, 2016, Volume 58, Issue 4, ⁠⁠https://doi.org/10.1525/cmr.2016.58.4.13⁠

This episode is part of the series Dynamic Capabilities for Success with Professor David Teece. In this recorded lecture series, Professor David Teece, creator of the dynamic capabilities framework, offers world-leading insights readily applicable to achieving success in #business, #leadership, #strategy, #entrepreneurship, and #management.

To learn more about the concepts discussed in this episode, here are some links to foundational readings by Professor Teece:

"Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, August 7, 2007, ⁠⁠https://doi.org/10.1002/smj.640⁠⁠

"The foundations of enterprise performance: Dynamic and ordinary capabilities in an (economic) theory of firms." The Academy of Management Perspectives, 28(4), 328–352. ⁠⁠https://doi.org/10.5465/amp.2013.0116⁠⁠

"Dynamic Capabilities and Organizational Agility: Risk, Uncertainty, and Strategy in the Innovation Economy." With Margaret Peteraf and Sohvi Leih. California Management Review, August 1, 2016, Volume 58, Issue 4, ⁠⁠https://doi.org/10.1525/cmr.2016.58.4.13⁠