Innovation as a second or third mover
Late entry is no barrier to innovation: second and third movers have significant advantages, if they can navigate the IP landscape, says Christian Heubeck at Weickmann
Is first to market always a winning strategy? First movers enjoy visibility, brand recognition and the ability to set standards. Yet history shows that second and even third movers can catch up – and sometimes overtake pioneers. Google entered search after Yahoo, Netflix started streaming after others had tried and both went on to dominate their industries. First-mover advantage, in other words, is never guaranteed.
What often separates winners from losers among followers is how they handle intellectual property. It defines the legal and strategic landscape in which late entrants must operate: overlooking it risks costly lawsuits; using it creatively can turn late entry into a competitive edge.
Pioneers are remembered for innovation, but they also bear heavy burdens: risky research and development, market education and untested business models that may lead to dead ends.
Followers can learn from these early struggles. Second movers can watch and adapt. They analyse what worked, avoid costly mistakes and then launch products that are cheaper, more refined or easier to use.
As an example, take the market for biosimilars. When AbbVie’s blockbuster drug Humira was nearing the end of its patent protection, competitors like Amgen, Boehringer Ingelheim and Samsung Bioepis spent years preparing copycat versions. Amgen even secured approval in the US for its version, Amjevita, back in 2016, but a web of patent settlements with AbbVie meant it couldn’t actually launch in the US until early 2023. In Europe, however, biosimilars hit the market as early as 2018, quickly cutting prices by as much as 80% in some countries and saving billions for healthcare systems.
These followers did not simply copy Humira’s molecule. They built their own manufacturing platforms, analytical methods and comparability studies to demonstrate biosimilarity. They also crafted commercial strategies, including discount contracting and payer partnerships.
Third movers may go further, positioning themselves as cost leaders, niche specialists or providers of complementary solutions. In doing so, they exploit infrastructure, regulation and market education built by pioneers without shouldering the highest risks.
Late entrants also enjoy flexibility. Pioneers often lock themselves into early technologies or business models that later become outdated. Followers can adopt newer tools, materials and distribution channels, as well as benefitting from regulatory clarity that did not exist for pioneers.
Facebook overtaking MySpace, Samsung catching Apple in smartphones or SpaceX overtaking earlier private space-flight ventures, all illustrate how second movers can outmanoeuvre pioneers with better timing and faster iteration. However, these advantages only pay off if followers respect the IP landscape. Otherwise, the legal costs of litigation can quickly wipe out any savings from avoiding first-mover R&D.
So the question is not just whether to enter, but how to enter, what to license, what to design around, where to differentiate and how to turn IP into a long-term strategic asset.
In practice, successful followers treat IP as a core function rather than a legal afterthought. They monitor the patent landscape continuously to identify risks and openings, combining imitation of unprotected features with unique improvements to balance speed and originality. Best-in-class followers also review their portfolios regularly, pruning weak assets and doubling down on technologies that can unlock future licensing revenue or partnerships.
Where technology cannot be differentiated, they focus on superior customer experience, branding and innovative distribution models to win market share. Beyond processes, leading followers embed IP awareness deeply into their organisational culture. Some establish dedicated IP committees at the board or C-level, integrating legal, research and commercial perspectives into a coherent strategy.
Being a second or third mover is not a disadvantage. Done right, it can be a powerful strategic edge. Pioneers may open markets, but followers refine them, scale them and sometimes overtake the leaders.
• The full article by Christian Heubeck at Weickmann, ‘Innovation as a second or third mover’ appears in Managing Intellectual Property Today, 2026/27 edition. See here for details.
