Showing papers on "Open innovation published in 2013"

Leveraging External Sources of Innovation: A Review of Research on Open Innovation

Abstract: This article reviews research on open innovation that considers how and why firms commercialize external sources of innovations. It examines both the “outside-in” and “coupled” modes of Enkel et al. (2009). From an analysis of prior research on how firms leverage external sources of innovation, it suggests a four-phase model in which a linear process — (1) obtaining, (2) integrating and (3) commercializing external innovations — is combined with (4) interaction between the firm and its collaborators. This model is used to classify papers taken from the top 25 innovation journals identified by Linton and Thongpapan (2004), complemented by highly cited work beyond those journals. A review of 291 open innovation-related publications from these sources shows that the majority of these articles indeed address elements of this inbound open innovation process model. Specifically, it finds that researchers have front-loaded their examination of the leveraging process, with an emphasis on obtaining innovations from external sources. However, there is a relative dearth of research related to integrating and commercializing these innovations.Research on obtaining innovations includes searching, enabling, filtering, and acquiring — each category with its own specific set of mechanisms and conditions. Integrating innovations has been mostly studied from an absorptive capacity perspective, with less attention given to the impact of competencies and culture (including not-invented-here). Commercializing innovations puts the most emphasis on how external innovations create value rather than how firms capture value from those innovations. Finally, the interaction phase considers both feedback for the linear process and reciprocal innovation processes such as co-creation, network collaboration and community innovation.This review and synthesis suggests several gaps in prior research. One is a tendency to ignore the importance of business models, despite their central role in distinguishing open innovation from earlier research on inter-organizational collaboration in innovation. Another gap is a tendency in open innovation to use “innovation” in a way inconsistent with earlier definitions in innovation management. The article concludes with recommendations for future research that include examining the end-to-end innovation commercialization process, and studying the moderators and limits of leveraging external sources of innovation.

Open Innovation in Small and Medium‐Sized Enterprises (SMEs): External Knowledge Sourcing Strategies and Internal Organizational Facilitators

Abstract: In this paper we explore how SMEs engage in external knowledge sourcing, a form of inbound open innovation. We draw upon a sample of 1,411 SMEs and empirically conceptualize a typology of strategic types of external knowledge sourcing, namely minimal, supply-chain, technology-oriented, application-oriented, and full scope sourcing. Each strategy reflects the nature of external interactions and is linked to a distinct mixture of four internal practices for managing innovation. Both full-scope and application-oriented sourcing offer performance benefits and are associated with a stronger focus on managing innovation. However, they differ in their managerial focus on strategic and operational aspects.

Innovation and Productivity: An Update

Abstract: This paper reviews the existing evidence regarding the effects of technological and non-technological innovations on the productivity of firms and the existence of possible complementarities between these different forms of innovation.

Open innovation practices in SMEs and large enterprises

Abstract: Few studies on open innovation (OI) address OI practices in small and medium-sized enterprises (SMEs) and how their use of OI and the resulting benefits differ from those of large enterprises. The lack of resources in SMEs to engage in looking outward is said to be a barrier to OI, but at the same time this shortage is cited as a motive for looking beyond organisational boundaries for technological knowledge. We investigate how OI dimensions impact the innovative performance of SMEs in comparison to large companies. The key finding is that the effects of OI practices in SMEs often differ from those in large firms. SMEs are more effective in using different OI practices simultaneously when they introduce new products on the market, whereas this is less the case for large firms. Turnover from new products in SMEs is driven by intellectual property protection mechanisms, while large firms in this case benefit more from their search strategies.

Viewpoint: Towards an information systems perspective and research agenda on crowdsourcing for innovation

Abstract: Recent years have seen an increasing emphasis on open innovation by firms to keep pace with the growing intricacy of products and services and the ever changing needs of the markets. Much has been written about open innovation and its manifestation in the form of crowdsourcing. Unfortunately, most management research has taken the information system (IS) as a given. In this essay we contend that IS is not just an enabler but rather can be a shaper that optimizes open innovation in general and crowdsourcing in particular. This essay is intended to frame crowdsourcing for innovation in a manner that makes more apparent the issues that require research from an IS perspective. In doing so, we delineate the contributions that the IS field can make to the field of crowdsourcing.

The Oxford Handbook of Innovation Management

Abstract: INTRODUCTION THE SOURCES OF INNOVATION THE CONTEXT FOR INNOVATION STRATEGY, MANAGEMENT AND ORGANIZATION

Cui Bono? The Selective Revealing of Knowledge and Its Implications for Innovative Activity

Abstract: Current theories of how organizations harness knowledge for innovative activity cannot convincingly explain emergent practices whereby firms selectively reveal knowledge to their advantage. We conceive of selective revealing as a strategic mechanism to reshape the collaborative behavior of other actors in a firm's innovation ecosystem. We propose that selective revealing may provide an effective alternative to known collaboration mechanisms, particularly under conditions of high partner uncertainty, high coordination costs, and unwilling potential collaborators. We specify conditions when firms are more likely to reveal knowledge and highlight some boundary conditions for competitor reciprocity. We elaborate on strategies that allow firms to exhibit managerial agency in selective revealing and discuss selective revealing's implications for theories of organization and open innovation and for management practice.

How constraints and knowledge impact open innovation

Abstract: 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.

Citizen Participation, Open Innovation, and Crowdsourcing: Challenges and Opportunities for Planning

Abstract: Open innovation, taken from the fields of business strategy and technology development, can offer planners fresh insights into their own practice. Open innovation, like citizen participation, goes outside the boundaries of the organization to find solutions to problems and to hand ideas off to partners. A key technique for open innovation is “crowdsourcing,” issuing a challenge to a large and diverse group in hopes of arriving at new solutions more robust than those found inside the organization. The differences between citizen participation and Internet-based crowdsourcing are discussed. Crowdsourcing case studies are provided as a means for extending an emerging literature.

Special Issue on Smart Cities and the Future Internet in Europe

Abstract: This Special Issue of the Journal of the Knowledge Economy focuses on how advanced European cities develop strategies towards becoming “smart cities”, based on the many possible innovative usages of network infrastructures and Internet-based applications, through the engagement of open innovation ecosystems. Part of these strategies is to develop new types of innovation approaches in urban areas, which are characterized, firstly, by a high level of citizen involvement in co-creating Internet-based applications in all sectors of the economy and society; secondly, by the emergence of new forms of collaboration among local governments, research institutes, universities, and companies. Such strategies and the resulting "innovation ecosystems" are becoming increasingly relevant given the growing economic and social issues and opportunities that cities are currently facing. This special issue investigates these smart city strategies through four smart city case studies and two papers addressing horizontal issues. The case studies aim to analyze the currently emerging strategies and policies related to identify how the opportunities of the Future Internet are being used for the socio-economic development of urban areas. The four cases also address how cities are redefining their innovation structures and how they started to experiment citizens involvement within the context of open innovation, and present lessons learned that are of interest to smart city stakeholders.

Different Modes of Open Innovation: A Theoretical Framework and an Empirical Study

Abstract: The following sections are included:IntroductionThe Theoretical FrameworkThe Empirical StudyOpen innovatorsSpecialised collaboratorsIntegrated collaboratorsClosed innovatorsConclusionsReferences

Implementing Open Innovation in the Public Sector : the Case of Challenge.gov

Abstract: This article is free to read on publisher website Abstract As part of the Open Government Initiative, the Barack Obama administration has called for new forms of collaboration with stakeholders to increase the innovativeness of public service delivery. Federal managers are employing a new policy instrument called Challenge.gov to implement open innovation concepts invented in the private sector to crowdsource solutions from previously untapped problem solvers and to leverage collective intelligence to tackle complex social and technical public management problems. The authors highlight the work conducted by the Office of Citizen Services and Innovative Technologies at the General Services Administration, the administrator of the Challenge.gov platform. Specifically, this Administrative Profile features the work of Tammi Marcoullier, program manager for Challenge.gov, and Karen Trebon, deputy program manager, and their role as change agents who mediate collaborative practices between policy makers and public agencies as they navigate the political and legal environments of their local agencies. The profile provides insights into the implementation process of crowdsourcing solutions for public management problems, as well as lessons learned for designing open innovation processes in the public sector.

Crowd Science: The Organization of Scientific Research in Open Collaborative Projects

Abstract: A growing amount of scientific research is done in an open collaborative fashion, in projects that are sometimes labeled as “crowd science”, “citizen science”, or “networked science”. This paper seeks to gain a more systematic understanding of crowd science and to provide scholars with a conceptual framework and an agenda for future research. First, we briefly present three case examples that span different fields of science and illustrate the heterogeneity concerning what crowd science projects do and how they are organized. Second, we identify two fundamental elements that characterize crowd science projects - open participation and open sharing of intermediate inputs - and distinguish crowd science from other knowledge production regimes such as innovation contests or traditional “Mertonian” science. Third, we explore potential knowledge-related and motivational benefits that crowd science offers over alternative organizational modes, and potential challenges it is likely to face. Drawing on prior research on the organization of problem solving, we also consider for what kinds of tasks particular benefits or challenges are likely to be most pronounced. We conclude by outlining an agenda for future research and by discussing implications for funding agencies and policy makers.

Rethinking the role of intermediaries as an architect of collective exploration and creation of knowledge in open innovation

Abstract: This paper questions the applicability of traditional notions of intermediary activities, which are usually categorized as either brokering or networking, in cases of high uncertainty regarding technologies, markets or which actors to involve. In the case of collaborative open innovation, especially in circumstances when no single organization is able to take on the challenge alone, the activities traditionally associated with intermediation do not suffice to describe what an intermediary can do to support innovation. This paper presents two cases of intermediaries working with the early phases of traffic safety innovations, and how they have managed to develop their activities beyond solely brokering and networking, but also to take an active role in the process of joint exploration and creation of knowledge. We use a qualitative approach to analyze the two cases in order to provide examples of how rethinking intermediation activities can support open innovation in a collaborative setting. The findings suggest that intermediaries can take on a more active role, which could be described as an architect which designs prerequisites and offers leadership in the process of joint exploration and creation of knowledge.

“Does This Sound Like a Fair Deal?”: Antecedents and Consequences of Fairness Expectations in the Individual’s Decision to Participate in Firm Innovation

Abstract: The Internet has given rise to new organizational forms of integrating users into firm innovation. Companies willing to make use of external resources can now outsource innovation-related tasks to huge “crowds” outside the company. The extant literature on participation motives assumes a symbiotic relationship between the firm and external contributors in which both parties have largely complementary motives and are only interested in their own utility. In two experimental simulations, we show that this understanding has to be amended: potential contributors not only want a good deal, they also want a fair deal. Fairness expectations with regard to the distribution of value between the firm and contributors (distributive fairness) and the fairness of the procedures leading to this distribution (procedural fairness) impact the likelihood of participation beyond considerations of self-interest. Fairness expectations are formed on the basis of the terms and conditions of the crowdsourcing system and the ex ante level of identification with the firm organizing it. In turn, they impact the individuals’ transaction-specific reactions and also inform their future identification with the firm. These findings contribute not only to research on open and user innovation but also to theories on organizational fairness by enhancing our understanding of the emergent field of fairness expectations.

The Emergence of Openness: How and Why Firms Adopt Selective Revealing in Open Innovation

Abstract: Open innovation is often facilitated by strong intellectual property rights (IPRs), but it may also function, and even be boosted, when firms deliberately waive some of their IPRs. Extant literature has pointed out the potential benefits of such behavior, but falls short of explaining what triggers firms to practice it in the first place and to maintain or extend it. Since the waiving of IPRs runs counter to common views on strategy and competition and to engrained practices, this is a non-trivial question. To address it, we conduct an empirical study in a segment of the computer component industry which traditionally has taken a rather proprietary stance. With the advent of the open source operating system Linux, firms increasingly waived their IPRs on software drivers. We trace and analyze this process using both qualitative and quantitative methods. Our results indicate that component makers went through a learning process to realize that and how selectively waiving IPRs may be beneficial for their business. We uncover customer demand pull as the initial trigger and observe how a positive feedback loop sets in subsequently, leading to a further increase in the use of selective revealing. Overall, we find that openness develops into a novel dimension of competition. We discuss the implication of our findings for research on open innovation and highlight how they impact managers in practice.

Open innovation in small and medium-sized enterprises: An overview

Abstract: Our introduction provides the foundation and background for this special issue on open innovation. Since the beginning of the 21st century, innovation has evolved from being the artefact of an indi...

Overcoming organizational inertia to strengthen business model innovation: An open innovation perspective

Abstract: Purpose – This study aims to examine how open innovation can be effective in changing organizational inertia to create business model innovation and improve firm performance It also seeks to explore whether the existence of open innovation has a mediating effect and influence Design/methodology/approach – This study constructs a theoretical model to explore the relationship between latent variables and uses a questionnaire to collect research data In the conceptual framework, organizational inertia is a second-order latent variable and comprises three first-order latent variables: insight inertia, action inertia, and psychological inertia Open innovation is also a second-order latent variable, and consists of two first-order latent variables: outbound and inbound open innovation To clarify the relationship between these latent variables, structural equation modeling (SEM) is used to test the goodness of fit of the theoretical model and research hypotheses This study uses 141 small to medium-sized ma

Models of adoption of open innovation within the food industry

Abstract: Innovation in the food industry is increasingly based on the decisions and activities of the company itself but also, and in particular, of the other entities involved in the innovation system. Similar considerations hold for open innovation mechanisms: due to the wide number of players involved in the development of innovative products, innovation activities must be carefully coordinated. As such, the sector should exhibit a significant number of open innovation strategies, whose purpose may range from merely access to external sources of knowledge, to actively taking part in the creation of inter-organizational knowledge and skills. Although there is still limited empirical evidence regarding open innovation strategies in the food industry, some studies are available highlighting how different firms succeeded in overcoming some of the barriers to innovation. In this paper, we review the extant literature on open innovation practices in the food context, and specifically we analyse three main models recently proposed. Finally, we draw implications for food companies and highlight some future trends for the open innovation adoption.

From innovation to commercialization through networks and agglomerations: analysis of sources of innovation, innovation capabilities and performance of Dutch SMEs

Abstract: This study claims that policy makers may not be sufficiently aware of the importance of maintaining an appropriate balance between exploration and exploitation networks for small and medium-sized enterprises (SMEs). On the basis of the open innovation model, policy makers are also increasingly stimulating SMEs to develop their exploration skills. In the Netherlands, a government subsidy called the ‘innovation voucher programme’ was introduced to stimulate SMEs to develop innovation in cooperation with knowledge institutes. Yet, although many studies show that SMEs tend to have a higher R&D productivity than larger firms, and innovative SMEs are more likely to make external networks with other SMEs or institutions such as universities, there is still little examination of the successfulness of SME’s innovation activities. The growing policy attention for the role of SMEs in innovation prompts the questions how innovation in SMEs can be facilitated, and which factors contribute to the success (or failure) of their innovation efforts. This study explores the innovation strategy of innovative Dutch SMEs by means of their sources of innovation, innovation capabilities, innovation performance, and commercialization sources. By means of structural equation modelling of a sample of 243 Dutch SMEs, this study shows that exploring (technology) opportunity together with institutions such as universities and private research establishments is important for successful innovation in SMEs. But, in addition, our model shows that contacts with competitors are also important for successful innovation performance. Our finding that openness of open innovation also applies to the commercialization phase is too often neglected by researchers and policy makers.

Using Open Innovation to Identify the Best Ideas

Abstract: As innovation becomes more democratic, many of the best ideas for new products and services no longer originate in well-financed corporate and government laboratories. How can companies tap into distributed knowledge and diverse skills? Increasingly, organizations are considering using an open-innovation process, but many are finding that making open innovation work can be more complicated than it looks. The authors research suggests that executives in numerous industries face the same fundamental decisions when exploring open innovation: (1) whether to open the idea-generation process, (2) whether to open the idea-selection process or (3) whether to open both. The key to success, the authors argue, is careful consideration of what to open, how to open it and how to manage the new problems created by the openness. Although the authors found that many managers were fearful about venturing into an entirely new type of innovation process, they maintain that open innovation is rooted in classic innovation principles such as idea generation and selection. The first benefit of open innovation is the number of ideas that become available. Statistically, the more ideas generated, the better the quality of the best one is likely to be. A second, lesser-known advantage of open innovation is that the value of the best idea generally increases with the variability of the ideas received. There are advantages to casting the net widely enough to access ideas of diverse quality: The quality of the average idea may fall, but the best idea is more likely to be spectacular. While managers are often apprehensive about idea creation through open innovation, many are completely unfamiliar with the possibilities offered by opening idea selection. They assume that only company employees can make good choices about which ideas are best. Yet the authors found that outsiders provide distinctive expertise and perspectives, which enable companies to pick winning ideas and generate significant value. This is particularly true with products that can be used in many ways, or when fashions or requirements change quickly. A potential problem in open innovation, the authors point out, relates to how companies contract with idea generators. A second challenge in managing open innovation is caused by a shift in who bears the cost (and risk) of idea generation. With open innovation, the company pays for a design only after it has been completed. This means that the idea generator bears both the cost and the risk of developing a design. Opening up the selection process has its own perils. Managers need to consider whether outsiders have unique knowledge about customer needs. If managers conclude that an outside perspective is useful in the selection process, they should ask themselves whether they can align the incentives of the outside selectors with the company's goals. When both idea development and selection are done by outsiders, the authors say, a new business model is usually needed to capture value.

A corporate system for continuous innovation: the case of Google Inc.

Abstract: Purpose – History is full of companies that were once innovative leaders but lost their innovative ability. The purpose of this paper is to explore, from a firm‐level perspective, organizational characteristics for continuous innovation in rapidly changing industries.Design/methodology/approach – Findings from 28 interviews at Google Inc., are compared to previous research on organizational characteristics for continuous innovation.Findings – Google's organization can be viewed as a dynamic and open corporate system for continuous innovation, involving the entire organization and supported by an innovation‐oriented and change‐prone top management and board. The relative importance of eight organizational characteristics in this corporate system is elaborated upon.Research limitations/implications – There is a need for empirical research contributing to the development of a more comprehensive analytical framework for continuous innovation, including the role of culture and selection/facilitation of self‐or...

Open innovation in SMEs: A dynamic approach to modern entrepreneurship in the twenty‐first century

Abstract: Purpose – The purpose of this paper is to assess the impact of open innovation practices on the innovation capability and export performance of UK small and medium‐sized enterprises (SMEs).Design/methodology/approach – The empirical (quantitative) investigation is based on a sample of 64 SMEs in the UK – 33 “open” innovation firms and 31 “closed” innovation firms.Findings – The overall results demonstrate that the international competitiveness of SMEs is highly dependent on the cumulative effects and interrelationship between two key internal components, i.e. R&D capacity and managerial structure and competencies, coupled with two external factors, i.e. open innovation practices and the ability of the firm to attract government grants for R&D and technological development.Research limitations/implications – Owing to the size of the sample, it has not been possible to undertake research within the context of specific regional disparities and/or sectoral characteristics.Practical implications – In order to ...

Innovation intermediaries: a process view on open innovation coordination

Abstract: The paper reports an action study of seven innovation projects with collaborative partnerships in inter-organisational networks that are facilitated by innovation intermediaries. It contributes to open innovation literature the understanding of innovation processes as nested processes of co-creation on the one side and economic exchange on the other side. While innovation project management and (online) market places are well researched as distinct strategic positions, our observations suggest a third strategic position for innovation intermediaries as process coordinators with strategic innovation capabilities. The paper identifies matchmaking and innovation process design, management of collaborative projects, project valuation and portfolio management as three such strategic capabilities and identifies directions for future research on this emerging phenomenon.