PROFITING FROM OPENNESS: EXPLORING THE RELATIONSHIP BETWEEN PROFITS AND OPENNESS AMONG INNOVATING FIRMS (original) (raw)
Determinants of business openness in the innovation processes
The concept of open innovation has achieved special relevance not only as an object of study in academics, but also as a framework for the development of new models of business management. This article explores the determinants of one of the dimensions of open innovation associated with the use of external knowledge for the development of business innovation processes. The analysis is carried out based on the microdata of the Development and Technological Innovation Survey EDIT 2015-2016 carried out by Colombia's statistical agency (DANE). To this end, a measure that captures the degree of openness of the company in relation to the use of external sources of information for the development of innovation activities is introduced. Variables related to the technological capabilities of the company, barriers to innovation, and appropriability strategy are considered as possible determinants.
Going More Open in Innovation: Does it Pay?
2010
The research investigates into the relationship between the company's innovation inputs and its performance. The research was carried out on the sample of 2503 Slovenian companies from manufacturing and selected service sectors.
Replication note Openness and Innovation Performance Revisited
2016
Firms increasingly source new ideas and knowledge from alliances with external partners. Laursen and Salter’s (2006) seminal research shows that while such openness in innovation benefits firms, too much openness can have a negative effect on innovation performance. We provide a conceptual replication of this finding, relying on a unique longitudinal panel data set comprising three different innovation performance metrics: product and service innovations, process innovations, and marketing innovations.
Applying open innovation in business strategies: Evidence from Finnish software firms
Research Policy, 2010
Our study aims at shedding light on the innovative business strategies in the software sector and understanding better the economics that underlies the supply of Open Source Software (OSS). We use survey data collected from 170 Finnish software companies to investigate how different properties of software firms, such as size, age, intellectual capital, absorptive capacity, and ownership structure affect their decisions to base their business strategies on OSS supply or proprietary distribution of products and services.
Research Policy, 2013
To cope with fast-changing business environments, firms are increasingly opening up their organizational boundaries to tap into external source of knowledge. By restructuring their R&D system, firms face the challenge of balancing internal and external R&D activities to profit from external knowledge. This paper examines the influence of R&D configuration on innovative performance and the moderating role of a firm's R&D capacity. The findings suggest that firms that increasingly rely on external R&D activities have a better innovative performance, yet up to a point. Beyond this threshold, a greater share of external R&D activities reduces a firm's innovative performance. And such substitution effect is larger for firms with greater R&D capacity. Overall, this paper provides a better understanding of the open innovation paradigm by suggesting that the opportunity cost for further opening up R&D borders is higher for firms with a superior technological knowledge stock.
Strategic Management Journal, 2006
A central part of the innovation process concerns the way firms go about organizing search for new ideas that have commercial potential. New models of innovation have suggested that many innovative firms have changed the way they search for new ideas, adopting open search strategies that involve the use of a wide range of external actors and sources to help them achieve and sustain innovation. Using a large-scale sample of industrial firms, this paper links search strategy to innovative performance, finding that searching widely and deeply is curvilinearly (taking an inverted U-shape) related to performance.
Facing the winds of change: The managerial power of Open Innovation
Journal of Innovation Management
Since Henry Chesbrough coined the term of Open Innovation in 2003, it has attracted increasing interest from academics, practitioners and policy-makers alike. More than a decade after, some noticeable and contrasted facts emerge. First, Open Innovation has deeply penetrated the research realms, across disciplines, yet mainly in business, economics and management. Interestingly, this research has primarily focused on the inbound side of Open Innovation, first depicting the phenomenon, then exploring the contingencies and processes, and finally, examining the relationship between Open Innovation adoption and performance. Qualitative, exploratory research has been progressively complemented by large-scale, empirical studies. Unfortunately, few studies exploit indicators going beyond the usual suspects, such as cooperation practices, information sourcing, strategic alliances, joint patenting, and the like to capture the complex and multifaceted nature of Open Innovation. The Outbound, a...
How constraints and knowledge impact open innovation
Strategic Management Journal, 2013
Laursen and Salter (2006) examined the impact of a firm's search strategy for external knowledge on innovative performance. Based on organizational learning and open innovation literature, we extend the model hypothesizing that the search strategy itself is impacted by firm context. That is, both ‘constraints on the application of firm resources’ and the ‘abundance of external knowledge’ have a direct impact on innovative performance and a firm's search strategy in terms of breadth and depth. Based on a survey of Swiss‐based firms, we find that constraints decrease and external knowledge increases innovative performance. Although constraints lead to a broader but shallower search, external knowledge is associated with the breadth and the depth of the search in a U‐shaped relationship. Copyright © 2013 John Wiley & Sons, Ltd.
Open to a Select Few? Matching Partners and Knowledge Content for Open Innovation Performance
Creativity and Innovation Management, 2014
The main result is that the knowledge content of the collaboration moderates the performance outcomes and the negative impact of having too many different kinds of partners. This illustrates how successful firms use selective collaboration strategies characterized by linking explorative and exploitative knowledge content to specific partners, to leverage the benefits and limit the costs of knowledge boundary crossing processes.
Open innovation strategies in top R&D spending companies
2014 International Conference on Engineering, Technology and Innovation (ICE), 2014
The paper suggests an accounting-based methodology for defining open innovation adoption modalities, based on economic and financial transactions in inbound and outbound processes. The framework is applied to a sample of 274 top research and development spending companies operating in bio-pharmaceutical and technology hardware and equipment industries. For biotechnological companies open innovation represents a core activity, with most of them having high values of revenues deriving from joint development projects and licensing. On the other side, for pharmaceutical companies open innovation is somehow ancillary: even if most open innovation activities are widespread,