This paper has 2 pages (including this coversheet)

THE UNIVERSITY OF MELBOURNE

MELBOURNE BUSINESS SCHOOL

ECONOMICS OF INNOVATION PROFESSOR JOSHUA GANS

Final Exam: 2nd May, 2005 Reading & Noting Time: 30 minutes Exam Duration: 2 hours

THIS IS AN OPEN BOOK EXAMINATION

Special instructions to be added as appropriate - this list is an example only.

1.

During the reading time, candidates may make notes on the exam paper but may not write in their script books. Calculators may be used during the examination Answer ALL QUESTIONS. The marks for each question are indicated. Page 1 of 2

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This paper comprises 60% of the total marks in this subject.

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QUESTION 1 (40 Marks): These questions are in relation to Abgenix and the Xeno Mouse Case handed out in class.
(a) (b)

How would you characterise Abgenixs commercialisation strategy? How do you think Abgenix can best exploit the ABX-EGF opportunity? Specifically, does Pharmacol or BioPart represent a better way to go forward for Abgenix? What factors should you focus upon when choosing a partner? Should Abgenix change its commercialisation strategy going forward? What are the major risks associated with alternative commercialisation paths?

(c)

QUESTION 2 (20 Marks): A colleague has come to you with an idea and wants you advice as to how to proceed next. Here is what they said about their idea: How often is it that you are waiting for an elevator -- say to go up -- and the door opens and someone is still going down. When there is only a single shaft, it would be quicker to hop on, go down and then go straight up to your floor. However, to do so means that you will have to stop at the floor you get on. A simple solution to this would be to have a small button next to the elevator call button that allowed you to cancel the call. This would also assist if, for some reason, you pressed up when you wanted to go down or got interrupted and didnt want to take the elevator. This could also be an option inside an elevator if you change your mind as to the floor you want to go to. You do a quick search and there appears to be no patent on this idea. Moreover, you know that no elevator currently has a cancel or deselect option. Finally, there are two or three main elevator manufacturers in the world and it has been that way for the past century. Is there anyway your colleague could appropriate a return on this idea? What is you advice as to how to proceed and the options available?

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