Private-Collective Innovation, Competition, and Firms’ Counterintuitive Appropriation Strategies
50 Pages Posted: 7 Jul 2009 Last revised: 23 Sep 2011
Date Written: August 20, 2011
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.
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
Suggested Citation: Suggested Citation