Appropriating innovationʹs technical value: Examining the influence of exploration

In this study we examine how different approaches to exploratory search are used to generate an innovation influence appropriation of its technical value. Technical value is the benefit a firm derives from utilizing the underlying knowledge embedded in an innovation to stimulate and generate further innovations. Based on a sample of 772 patents from the ink jet printing field, we find that exploratory search that spans technical domains enhances appropriation of innovations’ technical value; conversely, exploratory search spanning industry domains diminishes appropriation of innovations’ technical value. These effects are further influenced by the age of the knowledge explored. In addition, we find that appropriation of innovations’ technical value enhances the market share of the innovators. We discuss the implications of these findings for both future research and for improving business practice.