The strategies firms use to protect their intellectual property and knowledgecan strongly influence their ability to capture the benefits of their innovative efforts.In attempting to appropriate their innovations, firms can chose from a range ofmechanisms, including patents, trade secrets and lead times. Yet, little is known abouthow the use of different appropriability mechanisms may shape innovativeperformance. Using a large-scale database of UK manufacturing firms, we examinehow legal (such as patents) and first mover (such as secrecy) appropriability strategiesshape performance. We find that both strategies are curvilinearly (taking an invertedU-shape) related to innovative performance, indicting that some firms may sufferfrom a myopia of protectiveness, relying too heavily on appropriation to the detrimentof other activities.
|DRUID - Danish Research Unit for Industrial Dynamics
|Udgivet - 2005
|DRUID Working Paper
- Intellectual property rights
- Innovative performance