Open Innovation: A Flexible Practice for Intellectual Property Management in Pharmaceutical Sector
01 Jan 2016-pp 261-276
TL;DR: In this paper, the authors explored the flexibility of organizations in adopting and using the open innovation practice with special reference to intellectual property management (IPM) with the main theme of "Open innovation as a flexibility exercise in managing the intellectual property with particular reference to patents in the pharmaceutical sector".
Abstract: The paradigm shift in management from part to whole has led to a complete rethinking of the working system in the organizations today. Coupled with the globalization-led competitiveness, a pressing need for flexibility in management has become imperative. Open Innovation (OI) is one such practice which the organizations today are looking forward to cope with change, respond quickly to threats and opportunities and manage diverse and decentralized operations. OI which allows for the use of internal and external resources both, is being adopted across different organizations amidst diverse challenges to be met. The life sciences sector is catching up with the OI paradigm though the change is gradual due to the challenges in breaking free from the shackles of traditional vertically integrated model. The pharmaceutical firms are grappling to adjust in this environment with administrative, regulatory, legal and management of intellectual property (IP) challenges. With this background, the present chapter aims to explore the flexibility of organizations in adopting and using the open innovation practice with special reference to intellectual property management (IPM). The discussion is centered on the main theme “open innovation as a flexibility exercise in managing the intellectual property with special reference to patents in the pharmaceutical sector”. Based on the secondary data, i.e. varied sources of literature a conceptual discussion on the paradoxical nature and the synergistic effect of open innovation (OI) and intellectual property (IP) is attempted in this chapter. What different connotations/factors of flexibility are exercised in the pharmaceutical organizations to synergize the two processes and what challenges need to be handled in this context, are examined here. The findings of this study, though mainly contextual with partial empirical exercise may add to the conceptual understanding of open innovation and flexibility.
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01 Aug 2010
TL;DR: In this article, the authors investigate the paradox that arises when firms simultaneously share and protect their knowledge in an alliance with other organizations and identify which strategies can be developed to cope with this tension.
Abstract: Purpose – The purpose of this paper is to investigate the paradox that arises when firms simultaneously share and protect their knowledge in an alliance with other organizations. The goal of this paper therefore is to explore this tension field in such a coupled open innovation process and to identify which strategies can be developed to cope with this tension.Design/methodology/approach – The study was initially guided by a literature review and exploratory interviews, and it ultimately develops an inductive framework based on a multiple case study approach. The paper presents eight cases of a focal firm involved in a particular R&D collaboration. The case studies are based on a variety of data sources, including a number of semi‐structured interviews.Findings – This paper unravels the tension field of knowledge sharing and protection in R&D collaborations, with the knowledge characteristics at the core and with the knowledge embodiment and relational dimension as mediating factors. These forces are in t...
89 citations
TL;DR: In this paper, a survey data is analyzed to rank OI practices (collaboration) of the firms, while patent data are analyzed to carry out descriptive and bivariate analysis to study the inter-firm differences in collaboration.
Abstract: PurposePatents as one of the important components of intellectual capital are emerging as a new source for mining insights on open innovation (OI) practice of the organizations. Their role in value creation through collaboration and the inter-firm differences is yet to be explored in depth.Design/methodology/approachTo achieve the aim, survey data is analyzed to rank OI practices (collaboration) of the firms, while patent data are analyzed to carry out descriptive and bivariate analysis to study the inter-firm differences in collaboration.FindingsThe survey findings highlight mergers and acquisitions (M&A) and patent pooling as the top two preferred modes of OI, while from patent data M&A has emerged as a predominant OI practice for mainly nonresident firms. At the firm level characteristics, out of firm age, number of granted patents and firm size, firm age has been found to be somewhat significant in few cases of OI practices.Research limitations/implicationsIt provides an alternative source, in this case patent data to study open innovation capabilities of firms in India. There is contribution to the patent value theory from profit motive to deriving strategic decisions on collaboration.Practical implicationsThe managerial implications of this study lie in realizing granted patents as important business tools for seeking collaboration, tracing competitive intelligence and the geography of innovation of the firms' competitors.Originality/valueThe dataset of granted patents at the Indian Patent office (2005–2017), the sample of pharmaceutical firms drawn from this list of patents, patent data– based OI insights and the use of multiple imputation technique to missing data for meaningful insights are some of the unique aspects of this paper.
5 citations
References
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Book•
01 Mar 2003TL;DR: Open Innovation: The New Imperative for Creating and Profiting From Technology as discussed by the authors is a book by Henry Chesbrough, which discusses the importance of open innovation for creating and profiting from technology.
Abstract: The article reviews the book “Open Innovation: The New Imperative for Creating and Profiting From Technology,” by Henry Chesbrough.
8,644 citations
TL;DR: In this paper, the authors present a survey on the use of patent data in economic analysis, focusing on the patent data as an indicator of technological change and concluding that patent data remain a unique resource for the study of technical change.
Abstract: This survey reviews the growing use of patent data in economic analysis. After describing some of the main characteristics of patents and patent data, it focuses on the use of patents as an indicator of technological change. Cross-sectional and time-series studies of the relationship of patents to R&D expenditures are reviewed, as well as scattered estimates of the distribution of patent values and the value of patent rights, the latter being based on recent analyses of European patent renewal data. Time-series trends of patents granted in the U.S. are examined and their decline in the 1970s is found to be an artifact of the budget stringencies at the Patent Office. The longer run downward trend in patents per R&D dollar is interpreted not as an indication of diminishing returns but rather as a reflection of the changing meaning of such data over time. The conclusion is reached that, in spite of many difficulties and reservations, patent data remain a unique resource for the study of technical change.
5,075 citations
Posted Content•
TL;DR: In this paper, the authors present a survey on the use of patent data in economic analysis, focusing on the patent data as an indicator of technological change and concluding that patent data remain a unique resource for the study of technical change.
Abstract: This survey reviews the growing use of patent data in economic analysis. After describing some of the main characteristics of patents and patent data, it focuses on the use of patents as an indicator of technological change. Cross-sectional and time-series studies of the relationship of patents to R&D expenditures are reviewed, as well as scattered estimates of the distribution of patent values and the value of patent rights, the latter being based on recent analyses of European patent renewal data. Time-series trends of patents granted in the U.S. are examined and their decline in the 1970s is found to be an artifact of the budget stringencies at the Patent Office. The longer run downward trend in patents per R&D dollar is interpreted not as an indication of diminishing returns but rather as a reflection of the changing meaning of such data over time. The conclusion is reached that, in spite of many difficulties and reservations, patent data remain a unique resource for the study of technical change.
4,845 citations
Journal Article•
TL;DR: Open Innovation: A Paradigm for Understanding Industrial Innovation as mentioned in this paper is a new paradigm for understanding industrial innovation, and the use of university research in firm innovation has been shown to support open innovation.
Abstract: 1 Open Innovation: A New Paradigm for Understanding Industrial Innovation SECTION I: FIRMS IMPLEMENTING OPEN INNOVATION 2 New Puzzles and New Findings 3 Whither Core Competency for the Large Corporation in an Open Innovation World? 4 Open, Radical Innovation: Toward an Integrated Model in Large Established Firms 5 Patterns of Open Innovation in Open Source Software SECTION II: INSTITUTIONS GOVERNING OPEN INNOVATION 6 Does Appropriability Enable or Retard Open Innovation? 7 The Use of University Research in Firm Innovation 8 Open Standards and Intellectual Property Rights 9 The Use of Intellectual Property in Software: Implications for Open Innovation SECTION III: NETWORKS SHAPING OPEN INNOVATION 10 The Inter-organizational Context of Open Innovation 11 Knowledge Networks and the Geographic Locus of Innovation 12 Open Innovation in Systemic Innovation Contexts 13 Open Innovation in Value Networks SECTION IV: CONCLUSIONS 14 Open Innovation: A Research Agenda
3,267 citations
TL;DR: In this paper, the authors investigate if open innovation practices are also applied by small and medium-sized enterprises (SMEs) and explore the incidence of and apparent trend towards open innovation.
Abstract: Open innovation has so far been studied mainly in high-tech, multinational enterprises. This exploratory paper investigates if open innovation practices are also applied by small- and medium-sized enterprises (SMEs). Drawing on a database collected from 605 innovative SMEs in the Netherlands, we explore the incidence of and apparent trend towards open innovation. The survey furthermore focuses on the motives and perceived challenges when SMEs adopt open innovation practices. Within the survey, open innovation is measured with eight innovation practices reflecting technology exploration and exploitation in SMEs. We find that the responding SMEs engage in many open innovation practices and have increasingly adopted such practices during the past 7 years. In addition, we find no major differences between manufacturing and services industries, but medium-sized firms are on average more heavily involved in open innovation than their smaller counterparts. We furthermore find that SMEs pursue open innovation primarily for market-related motives such as meeting customer demands, or keeping up with competitors. Their most important challenges relate to organizational and cultural issues as a consequence of dealing with increased external contacts.
1,947 citations