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Extending extant literature on geographic scope that has primarily focused on its role in value creation, I investigate the value appropriation aspect of geographic scope of knowledge acquisition. I maintain that isolating mechanisms created via geographic scope of knowledge acquisition can help firms prevent competitors from accessing their innovative knowledge and, by doing so, can help firms capture a larger proportion of economic returns from innovation, thus helping them enjoy better financial performance. Mediating and moderating effect analyses with patent- and firm-level data of the semiconductor industry corroborate the value appropriation aspect of geographic scope.
