Title: Appropriability mechanisms in internationalisation: possibilities to safeguard innovations

Authors: Pia Hurmelinna-Laukkanen; Kaisu Puumalainen; Sami Saarenketo

Addresses: Oulu Business School, University of Oulu, P.O. Box 4600, FI-90014 Oulu, Finland. ' School of Business, Lappeenranta University of Technology, P.O. Box 20, FI-53851, Lappeenranta, Finland. ' School of Business, Lappeenranta University of Technology, P.O. Box 20, FI-53851, Lappeenranta, Finland

Abstract: The internationalisation of innovation has become increasingly common. With this change, the significance of managing and safeguarding innovations and intellectual property in international environment has risen to new levels, yet challenges are notable as well. Firms face the pressure to find, obtain, and use tools and mechanisms that would enable them to protect their innovations and intangibles against undesirable imitation and, consequently, create better appropriation conditions for themselves. This study examines appropriation of innovations in respect to internationalisation. The objective of the article is to find out: a) how individual safeguarding/appropriability mechanisms are perceived by internationalising and internationalised firms; b) how these mechanisms relate to succeeding in international markets. The findings from the examination of 299 Finnish firms indicate that not all mechanisms are equally relevant considering the tendency of the firm to internationalise, and that different mechanisms yield different results in terms of international performance.

Keywords: internationalisation; innovation protection; research and development; R&D; intellectual property; knowledge protection; appropriability; international markets; Finland.

DOI: 10.1504/IJBG.2012.046211

International Journal of Business and Globalisation, 2012 Vol.8 No.3, pp.364 - 387

Published online: 14 Aug 2014 *

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