Multiple Options for Appropriation Mechanisms in a Business Environment and Implications for Policy

Appropriation is essential for innovators to succeed. Traditionally, among various appropriation mechanisms, patents and secrecy have received attention, and the differential role of patents has been highlighted according to different industries or sectors. These discussions give a rough idea, however, and do not yield concrete directives for strategies in the context of innovation management. This paper describes an analysis of the effect of a firm's position within the value chain and the objectives of innovative activities with appropriation mechanisms. Multivariate analysis of diverse appropriation mechanisms using Korean innovation survey data revealed a specific combination of mechanisms and significant determinants in the context of objectives of innovative activities.