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Appropriability regime for radical and incremental innovations
Author(s) -
HurmelinnaLaukkanen Pia,
Sainio LiisaMaija,
Jauhiainen Tiina
Publication year - 2008
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/j.1467-9310.2008.00512.x-i1
Subject(s) - dynamism , industrial organization , business , imitation , profit (economics) , product innovation , new product development , value (mathematics) , marketing , economics , microeconomics , computer science , psychology , social psychology , physics , quantum mechanics , machine learning
In the present day markets, new product development and innovation are essential for value creation. Innovation, however, hardly provides benefits if rivals are able to copy it with little or no extra cost. Consequently, being able to build an appropriability regime that provides effective protection against imitation and enables getting returns on investments in innovation is necessary. The problem is that choosing the methods to protect different kinds of innovations is not straightforward. In this paper we study appropriating from radical and incremental innovations. It is widely known that many significant differences exist between the two innovation types, and the appropriability conditions are no exception. Empirical evidence on the topic is provided by analyzing survey data collected among 299 companies. As a result, the effects of environmental dynamism and research and development (R&D) intensity on radical and incremental innovation are illustrated, and knowledge is provided on the role of the appropriability regime in enhancing the potential to profit from radical and incremental innovations.