Appropriability of design-based innovation across organisational boundaries: exploring collaborative relationships between manufacturing firms and designers in Italy

Capturing value from design-based innovation presents firms with some challenges which only recently academic research has started addressing. Increasingly, firms operating within design-intensive industries collaborate with external designers rather than undertaking this activity in-house. This raises some appropriability issues, as firms would need to reap the benefits of innovation originating across organisational boundaries. To address this gap, we carried out a multiple case study with firms and design consultants based in Italy across several manufacturing sectors. Our evidence suggests the presence of appropriability mechanisms that are specific to design innovation. Intellectual property rights, although not very effective, are employed to establish ownership in the market. Firms also use lead-time advantages, investment in specific assets and the quality of craftsmanship depending on the industry. Across most sectors, establishing long-term relationships inspired by knowledge sharing and trust constitutes a key mechanism firms adopt to appropriate the benefits attached to collaboration with external designers.