Product innovation describes a product whose components or basic characteristics are either new or significantly improved. Limited product substitutability fosters product innovation incentives and success. Substitutability is frequently associated with the ease technology can be imitated only. Although trademarks protect customers’ quality and brand associations as possible product-differentiating dimensions, little is known regarding the role of branding on product innovation success. Using unique data on firm’s innovation and branding activities from the Mannheim Innovation Panel, this project investigates whether branding which promises product quality as well as branding which competitively differentiates is positively correlated with innovation success.