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Private-Collective Innovation, Competition, and Firms’ Counterintuitive Appropriation Strategies


Oliver Alexy


Technische Universität München (TUM), TUM School of Management

Markus G. Reitzig


University 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

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Date posted: July 7, 2009 ; Last revised: September 23, 2011

Suggested Citation

Alexy, Oliver and Reitzig, Markus G., Private-Collective Innovation, Competition, and Firms’ Counterintuitive Appropriation Strategies (August 20, 2011). Available at SSRN: http://ssrn.com/abstract=1430328 or http://dx.doi.org/10.2139/ssrn.1430328

Contact Information

Oliver Alexy
Technische Universität München (TUM), TUM School of Management ( email )
Arcisstr. 21
Munich, 80333
Germany
+49-89-289-25741 (Phone)
+49-89-289-25742 (Fax)
HOME PAGE: http://www.ent.wi.tum.de
Markus G. Reitzig (Contact Author)
University of Vienna ( email )
Bruenner Strasse 72
Vienna, 1090
Austria
Feedback to SSRN (Beta)


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