How open is too open? The mitigating role of appropriation mechanisms in R&D cooperation settings

Abstract

In this article, we investigate the influence of firms’ R&D cooperation activities on their likelihood to experience imitation. Analyses of firm-level survey data concerning the R&D cooperation behavior of 2,797 German firms reveal that companies engaging in R&D cooperation face significantly more imitation than their peers that do not cooperate on R&D. Further, we show that cooperation with all potential collaboration partner types except universities and research institutions and in all phases of the innovation process increases the risk of imitation. While we find evidence that intellectual property rights (IPR) generally work well as governance mechanisms moderating the relationship between R&D cooperation and imitation, contracts do not. Hence, IPR apparently provide better protection against imitation than contracts. Our findings indicate that the risks associated with firms’ increased engagement in R&D cooperation could eventually harm the production of new knowledge.