By exploring the patterns of engagement in several intellectual property (IP) marketplaces on the part of a sample of pharmaceutical firms based in Germany, the article attempts to shed light on the strategic reasons which induce firms to participate in different IP marketplaces and governance structures, often at the same time.

The scope of the analysis includes not only the conventional proprietary marketplaces (patents and copyright) but also non-proprietary marketplaces (open source and trade in non-patented technology). Marketplaces are viewed as institutions that allow firms to realize strategic value but which, due to institutional inefficiencies, may fail to deliver firms the benefits they seek. Therefore, the obstacles that prevent IP marketplaces from functioning smoothly and efficiently are also investigated.

The analysis suggests that different marketplaces and governance forms contribute to the realization of specific forms of value for firms, and suffer from specific failures. In-depth investigation and comparison of IP marketplaces and governance forms is therefore a promising and useful area for policy-relevant research.