Operator-valued rational functions

In this paper we show that every inner divisor of the operator-valued coordinate function, $z{I}_E$, is a Blaschke-Potapov factor. We also introduce a notion of operator-valued “rational” function and then show that $\mathrm{\Delta }$ is two-sided inner and rational if and only if it can be represented as a finite Blaschke-Potapov product; this extends to operator-valued functions the well-known result proved by V.P. Potapov for matrix-valued functions.