Appropriation of Intellectual Property: A Multiple Cross-Case Analysis of SME Practices in Technology-intensive Industries

Abstract

Intellectual property (IP) is critical to the development of competitive advantage. Anecdotal evidence and the literature suggest that SMEs find it difficult to appropriate their IP, due to high legal costs. This study examines the key determinants of IP appropriation strategy in technology- intensive SMEs. We examine the relationships between the factors that facilitate IP appropriation and innovation performance with a qualitative analysis of five case studies in the biotechnology and ICT industries. The results reveal that SMEs in both sectors rely on organizational resources, specific IP acquisition practices and various IP protection practices to facilitate IP appropriation.