Appropriability of Design Innovations: A Case Analysis of the Design Furniture Industry in Italy and the Netherlands

Abstract

In this study, we examined how design-intensive firms secure returns from their design innovations - also referred to as appropriability. Previous research indicated that barriers that restrain or obstruct imitation by competitors may increase the returns that ultimately accrue to innovative firms. In this study, we focused on one barrier to imitation in particular, i.e. the reputation mechanism. More precisely, we examined whether and under what conditions reputational sanctions are strong deterrents against imitative behaviour. A case study approach was considered most appropriate for our research objectives: to build theory (rather than test theory) and to gain in-depth insight into the ‘..