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Innovation Performance In The Shadow Of Expropriability — Interplay Of The Appropriability Regime And Competitors' Absorptive Capacity

Author

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  • PIA HURMELINNA-LAUKKANEN

    (University of Oulu, Oulu Business School, P. O. Box 4600, FI-90014 University of Oulu, Finland)

  • KAISU PUUMALAINEN

    (Lappeenranta University of Technology, School of Business, P. O. Box 20, FI-53851 Lappeenranta, Finland)

Abstract

Expropriability is the ability of (potential) competitors to extract information about innovation and utilize it to their advantage in a manner that decreases the competitive advantages of the original innovator. It has an effect on the profit margins and, subsequently, on the strategic behavior of a firm in terms of innovation activities. In this study, the relationship of appropriability and expropriability is clarified, and empirical evidence from 299 companies is provided to increase understanding of the strategic protection of intellectual assets. The results indicate that industries differ in terms of expropriability and that innovation performance depends on the level of expropriability.

Suggested Citation

  • Pia Hurmelinna-Laukkanen & Kaisu Puumalainen, 2013. "Innovation Performance In The Shadow Of Expropriability — Interplay Of The Appropriability Regime And Competitors' Absorptive Capacity," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 1-22.
    • Handle: RePEc:wsi:ijitmx:v:10:y:2013:i:01:n:s0219877013500028
    DOI: 10.1142/S0219877013500028
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    References listed on IDEAS

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    1. Dijk van, M., 2003. "Industry Evolution in Developing Countries: the Indonesian Pulp and Paper Industry," Working Papers 03.02, Eindhoven Center for Innovation Studies.
    2. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
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