SC

Closely held knowledge

What is Closely held knowledge?

Secrecy limits access to reproducible knowledge.

How Closely held knowledge works

Assess how quickly observable outputs reveal the method and how independently a rival could recreate it. A method with several obvious substitutes may remain secret without protecting attractive returns.

The question to ask of a company

Could a rival infer the method from outputs, recreate it independently, or obtain it through ordinary employee movement?

Examples

  • Illustrative scenario: A calibration method remains internal, but measurements on shipped devices might reveal it.

Who names it

AuthorWhat they call it / where it appears
NeumannA Taxonomy of Moats — Closely held knowledge
Note. The diagnostic and scenario are Strategy Canon’s analytical application. Test the firm’s benefit and exclusion mechanism separately; this category alone does not establish Power.