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How do foreign firms patent in emerging economies with weak appropriability regimes? Archetypes and motives

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abstract Foreign firms patent in emerging economies with weak appropriability regimes at an increasing rate. This phenomenon constitutes a paradox since in such a setting foreign firms should have weak incentives to patent. In an attempt to resolve this paradox, we conducted an inductive analysis of 11 foreign firms that patent in such a setting, using the case of China as our empirical context. We identify four archetypes of foreign firms and three key antecedents the interaction of which determines which archetype a firm can be subsumed under.
Our study complements the developed-economy focus of the extant appropriation literature by adding an international perspective. We extend previous econometric studies by identifying salient factors on the firm level that determine the extent to which a foreign firm patents in emerging economies with a weak appropriability regimes, highlighting that the extent of a firm's motivation to maintain its freedom to operate can supersede imitability concerns. We also comment on the practical implications of these contributions for managers of foreign firms. Highlighting a structural conflict of interest between foreign firms from developed economies and the development goals of an emerging economy, we point to the generalizability of our results to a wide range of other emerging economies worldwide.
   
type journal paper
   
keywords Intellectual Property, emerging economy, China, appropriation, patent, appropriability regime
   
project New theoretical perspectives for international innovation: Research gaps and the need for intrafirm information
language English
kind of paper journal article
date of appearance 10-2012
journal Research Policy
publisher Elsevier (Amsterdam)
ISSN 0048-7333
DOI 10.1016/j.respol.2012.03.019
volume of journal 41
number of issue 8
page(s) 1422-1439
review double-blind review
   
profile area SoM - Business Innovation
citation Keupp, M. M., Friesike, S., & Zedtwitz, M. (2012). How do foreign firms patent in emerging economies with weak appropriability regimes? Archetypes and motives. Research Policy, 41(8), 1422-1439, DOI:10.1016/j.respol.2012.03.019.