Upstart startup: “Constructed advantage” and the example of Qualcomm

De la Mothe and Mallory have proposed that even in an age of globalization the right environmental conditions can give a locality a “constructed advantage” in promoting innovation. The creation and success of Qualcomm, a telecommunications company, illustrates the contention. The establishment of a branch of the University of California in San Diego was critical in attracting those who founded the company. But constructed advantage can only set the stage. In technological innovation, other factors also matter, including a marketable idea, entrepreneurial zeal, good timing, ability to influence standard setting, help from intellectual property law, and sheer perseverance. Qualcomm is a dramatic example of how constructed advantage can combine with these other factors to yield an impressive result.