Bootlegging in corporate research and development is defined as "a non-formalised and non-declared (secret) bottom-up innovation process for the benefit of the bootlegger's firm." In corporate bootlegging, an employee works on a project or projects unconnected to their "official" work, and is generally allowed to do so in the understanding that it may benefit the company in some way; however, managerial approval is not always given. David A. Schon introduced the notion of bootlegging into economics and business administration literature in 1963.

Bootlegging, as it is illegitimate behaviour, may cause an ethical dilemma between moral imperatives (i.e. the anomie caused from management's action plan versus the task to innovate). However, sometimes bootlegging can be carried out in a conspiration with management (conspirational bootlegging). Bootlegging which continues despite explicit managerial disapproval is called "hardcore bootlegging" or "creative deviance".