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Private-Collective Innovation, Competition, and Firms’ Counterintuitive Appropriation StrategiesOliver AlexyTechnische Universität München (TUM), TUM School of Management Markus G. ReitzigUniversity of Vienna August 20, 2011 Abstract: We extend theory on private-collective innovation by studying the role of exclusion rights for technology in the competition between private-collective and other innovators. We argue that private-collective innovators both pledge their own and invest in orphan exclusion rights for technology as a subtle coordination mechanism to compete against firms proposing alternative proprietary solutions. We discuss implications of our findings for theories of innovation, particularly appropriation strategy, ownership and control, and coordination and industry self-regulation.
Number of Pages in PDF File: 50 Keywords: Private-collective innovation, exclusion rights, competition, appropriation strategy, interfirm coordination, control, industry self-regulation, open source software JEL Classification: L10, O32, D23, L59, O33 working papers seriesDate posted: July 7, 2009 ; Last revised: September 23, 2011Suggested CitationContact Information
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