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The Role Of The Appropriability Mechanisms For The Innovative Success Of Portuguese Small And Medium Enterprises

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  • FÁBIO DE OLIVEIRA PAULA

    (Pontifical Catholic University of Rio de Janeiro, RJ, 22451-000, Brazil)

  • JORGE FERREIRA DA SILVA

    (Pontifical Catholic University of Rio de Janeiro, RJ, 22451-000, Brazil)

Abstract

This study investigates the role of formal and informal appropriability mechanisms to appropriate revenues from innovation in several sectors. This relationship depends on factors such as sector, type of product or service, firm’s characteristics, etc. The set of appropriability mechanisms used by a firm depends on their availability and on the firm’s appropriability strategy. An empirical test using a sample of 2,122 Portuguese SMEs from four different sectors of the 2012 Community Innovation Survey indicated that for manufacturing; water supply, sewerage, waste management and remediation activities; and wholesale and retail trade, repair of motor vehicles and motorcycles; informal appropriability mechanisms, such as lead-time and complexity, are more effective for converting product innovation into financial performance in the short term. On its turn, for extractive sectors (Mining and Quarrying), formal mechanisms (e.g., patents) are better to protect product innovation and informal mechanisms are more effective to protect process innovation.

Suggested Citation

  • Fábio De Oliveira Paula & Jorge Ferreira Da Silva, 2019. "The Role Of The Appropriability Mechanisms For The Innovative Success Of Portuguese Small And Medium Enterprises," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(04), pages 1-23, May.
    • Handle: RePEc:wsi:ijimxx:v:23:y:2019:i:04:n:s1363919619500324
    DOI: 10.1142/S1363919619500324
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