Abstract
This study systematically reviews 200 articles published over the past three decades to reveal how appropriability and appropriation have been explained and how those perspectives resonate with developments in the innovation environment. Our results show that despite the extensive stream of literature, little effort has been made to systematically advance theory on appropriability and appropriation. Based on and extending prior literature, we propose a conceptual framing that distinguishes appropriability and appropriation, and that explains how innovating organizations build their readiness to benefit from innovation and how they realize that potential. We outline appropriability as the potential to benefit from an innovation, which accrues through instruments of appropriability: isolating appropriability mechanisms and complementary assets; and appropriation as the realization of that potential, which manifests in private and social benefits when the instruments are employed in processes for exclusion, leverage, or disclosure. We highlight the strategic importance of aligning these elements and appropriability conditions in realizing appropriation outcomes. The paper closes with a discussion on the framework's applications and relevant future research avenues.
Highlights
The concepts of appropriability and innovation have been inter twined since the publication of the work of Schumpeter (1950)
Based on and extending prior literature, we propose a conceptual framing that distinguishes appropriability and appropriation, and that ex plains how innovating organizations build their readiness to benefit from innovation and how they realize that potential
We outline appropriability as the potential to benefit from an innovation, which accrues through in struments of appropriability: isolating appropriability mechanisms and complementary assets; and appropriation as the realization of that potential, which manifests in private and social benefits when the instruments are employed in processes for exclusion, leverage, or disclosure
Summary
The concepts of appropriability and innovation have been inter twined since the publication of the work of Schumpeter (1950). The value cre ation logics have progressed to new frontiers, and trends like digitali zation, openness, and collaboration have shifted the bases of value capture (Appleyard and Chesbrough, 2017; Colm et al, 2020; Felin and Zenger, 2014; Koutroumpis et al, 2020; Manzini et al, 2017; Tekic and Willoughby, 2020; Zobel et al, 2017) These developments challenge research regarding how contemporary appropriability-related phenomena are understood and communi cated. The subsequent discussion builds on these findings, introduces the suggested framing, and demonstrates its applicability across different settings and as a basis for future research
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