Abstract
The paper examines the appropriability problem (i.e., the inability of firms to profit fully from their innovations) with respect to investments in intellectual property development in general and software in particular; evaluates marketing, legal, and technological dimensions of the appropriability issue in the global software industry; and concludes that increasingly firms will supplement legal mechanisms with investments in complementary marketing assets and development of marketing strategies aimed at strategic alliances and diversification into related services in order to enhance the appropriability of the fruits of their investments in software development.
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