Firm size and appropriability of the results of innovation

This article studies the influence of four dimensions of knowledge (codifiability, observability, complexity and dependency) on two types of appropriation methods: secrecy and other alternative methods (constant incremental improvements, lead time, moving down the learning curve and control of complementary resources) and how the firms’ size modifies these relationships.Based on a sample of 670 innovations developed by Spanish industrial firms, codifiability, observability and dependency were found to be the attributes that marks the effectiveness of both secrecy and the other alternative methods. Dependency marked the effectiveness of alternative methods in large companies and observability and codifiability in small firms.