Article

Open innovation's promise and perils

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... In order to gain advantages over rivals, many producers heavily databases and other sources of information for innovative experts all over the world in order to connect them with their clients. However, so far their success rates have been relatively limited [Lichtenthaler/Ernst 2008], and [Gwynne 2007]. At the same time, many companies start to extend their search for new ideas to those whom they sell their products and services to -their customers. ...
... allow people all over the world to contribute to and to profit of collective information[Gwynne 2007], [Maklan/Knox/Ryals 2007], [Drossou/Krempl/Poltermann 2006], and According to [Hotz-Hart 2008], innovations are new and useful ideas that can be transcribed into a marketable product or service. Besides, [Grasshoff 2008] points out that innovations are also technological-scientific developments. ...
... The higher corporate performance is the target of company [13] [14] [15]. These arguments, like technology, strategic planning, etc. have been discussed to improve the competition of the company, while co-evolution between enterprises and other innovation factors [16] [17] [18] [19] [20] [21]. ...
... In retrospect, to examine how the research streams of an innovation ecosystem evolves in different periods, the present study finds that this concept was raised around 2000. Initially, the literature mainly explored the elements of the innovation ecosystem, and focused on the roles played by these elements in the ecosystem, such as outsourcing R&D, technology in-sourcing [14,26], and open innovation platforms [27,28]. As there is more research on this concept, the focus shifts to the industry application of the innovation ecosystem, such as the type [29] or the composition [30] of the innovation ecosystems. ...
Article
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The present study explores the impacts of corporate strategic orientation on innovation ecosystems through the perspective of systems thinking. Multiple-cases method was adopted to analyze three representative companies of different industries. In terms of academic contribution, the results of this study verify an innovation ecosystem model in a generalized manner, and find that market orientation, interaction orientation, and entrepreneurial orientation generate a positively reinforcing effect on the paths of the innovation ecosystem model in all phases, thus, diversifying the available literature of innovative ecosystems. In terms of practical contribution, this study presents a dynamic context of the development of new business, and describes the links between innovative activities and the market. Enterprises can refer to the proposed framework as well as strategic architecture in this study to effectively transform innovative activities into market performance.
... In the commercial area, adopting an open innovation process " includes various perspectives: (1) globalization of innovation, (2) outsourcing of R&D, (3) early supplier integration, (4) user innovation, and (5) external commercialization and application of technology " (Gassmann, 2006, p. 224). Consequently, in order to move towards open innovation, there is a need for organisations to utilise " both external and internal ideas to create value, while defining internal mechanisms to claim some portion of that value " (Chesbrough, 2003, There have been examples of the successful application of open innovation R&D processes in commercial settings such as consumer electronics (Blau, 2007), pharmaceuticals (Lane and Probert, 2007), as well as automobiles and computer hardware (Gwynne, 2007). Nonetheless, Chesbrough and Crowther (2006) found that companies that 'look outside' for technologies tend to minimise risk by investing in technologies that are often proven in other applications as opposed to 'new to the world' technologies. ...
Article
Open source software (OSS) is probably the best known exemplar of open innovation, with many practitioner-oriented publications having debated the merits and drawbacks of OSS in recent years. Nevertheless, much of the academic research on OSS has focused on individual rather than organizational issues. Hence while there is some understanding of why individual developers and users opt for particular OSS applications, relatively little is known about the adoption of OSS as a software acquisition policy. This paper presents a study of 13 managers in the secondary software sector in Europe, and examines how their perceptions of the benefits and drawbacks of OSS affected their decision to adopt an open source policy for software in their companies. The study reveals how their perceptions of the business and technical benefits and drawbacks of OSS influenced the technological, organizational, environmental and individual factors considered within the adoption process. The findings reveal that many of these factors are similar to those reported by previous work on the adoption of innovation, leading us to conclude that organizational processes for the adoption of open innovation are reliant on the practices for closed innovation despite frequently cited loss of organizational control associated with open innovation.
... There have been numerous examples of the successful application of open innovation research and development processes in commercial settings such as consumer electronics (Blau 2007), pharmaceuticals (Lane and Probert 2007), as well as automobiles and computer hardware (Gwynne 2007). While open innovation practices are not limited to "high-tech" sectors (Chesbrough and Crowther 2006), there is a paucity of research on the application of open innovation outside the commercial environment. ...
Conference Paper
This work-in-progress paper presents an exploration of a network of Swedish municipal authorities. Within this network, we have observed a move from isolated innovation to leveraging inflows and outflows of knowledge in a manner characteristic of the open innovation paradigm. This paper presents a characterization of these knowledge exchanges using an existing framework of open innovation archetypes, as well as an initial description of the business model impacts of this innovation approach on the participant municipalities, and the enabling role of information technology. The paper concludes by drawing preliminary conclusions and outlining ongoing research.
... Not only smaller firms but also larger organizations may benefit from intermediaries, especially for outbound open innovation. Despite the widespread recognition of its potential for both inbound and outbound open innovation (e.g., Gwyne, 2007), using intermediaries comes with new management challenges (Sieg et al., 2010). Another issue becomes apparent when changing the time perspective. ...
Article
Open innovation has become one of the hottest topics in innovation management. This article intends to explore the limits in our understanding of the open innovation concept. In doing so, I address the questions of what (the content of open innovation), when (the context dependency) and how (the process). Open innovation is a rich concept, that can be implemented in many different ways. The context dependency of open innovation is one of the least understood topics; more research is needed on the internal and external environment characteristics affecting performance. The open innovation process relates to both the transition towards open innovation, and the various open innovation practices.As with any new concept, initial studies focus on successful and early adopters, are based on case studies, and descriptive. However, not all lessons learned from the early adopters may be applicable to following firms. Case study research increases our understanding of how things work and enables us to identify important phenomena. They should be followed by quantitative studies involving large samples to determine the relative importance of factors, to build path models to understand chains of effects, and to formally test for context dependencies. However, the evidence shows that open innovation has been a valuable concept for so many firms and in so many contexts, that it is on its way to find its final place in innovation management.
... The first development trajectory relates to open innovation. In the past we have seen an increasing interest to reduce cost and increase leverage of own R&D activities through opening up the innovation process [62][63][64][65][66][67]. Likewise, the foresight activities can potentially profit from collaborating with others. ...
Article
Full-text available
In this article we present and discuss the IT tools that Deutsche Telekom Innovation Laboratories use to support their corporate foresight activities. These tools are integrated into an approach that encompasses the discovery of change, interpretation, and triggering managerial responses. The overall system consists of a tool for scanning for weak signals on change (PEACOQ Scouting Tool), a tool for collecting internal ideas (PEACOQ Gate 0.5), and a tool for triggering organizational responses (Foresight Landing page). Particularly the link to innovation management and R&D strategy is discussed in detail. We further report on the value creation and lessons learned that have accumulated over the last eight years throughout which the tools and approach have been built gradually.
... In open innovation, firms supplement, or even supplant, internal Research and Development (R&D) efforts by leveraging a variety of sources for knowledge 'inflows' including suppliers, partners, customers, competitors, academic researchers, etc. (Chesbrough, 2003). Research on open innovation processes in commercial settings such as consumer electronics (Blau, 2007; Cui et al., 2009), pharmaceuticals (Lane and Probert, 2007), and automobiles and computer hardware (Gwynne, 2007), as well as in public administration (Feller et al., 2011), illustrate that organizations seeking to acquire innovation and/or innovation capacity will look to establish cooperative relationships with external parties; supporting claims regarding the critical role played by inter-organizational networks in open innovation (cf. Vanhaverbeke and Cloodt, 2006). ...
Article
Exemplars of open innovation have revealed that intellectual property (IP) need not only be sourced through existing hierarchical or market relationships. Rather IP can be acquired from individuals and firms with whom an organization has no prior relationship. In such cases, an intermediary, operating as an innovation exchange or brokerage, frequently facilitates the development and acquisition of IP. This paper examines one type of innovation intermediary, the ‘Solver Brokerage,’ which enables innovation exchanges between organizations and unknown external firms and individuals (i.e. a crowdsourcing process). While the commercial success of Solver Brokerages indicates the potency of arguments concerning the potential of crowdsourcing, little is known about the operation of such brokerages or the crowdsourcing processes that they enable. This paper examines extant research on innovation networks, crowdsourcing, and electronic marketplaces to identify three processes (knowledge mobility, appropriability and stability) that we argue are necessary to ‘orchestrate’ crowdsourcing. Using a field study of four Solver Brokerages, an innovation seeking organization, as well as 15 innovation providers (i.e. members of the ‘crowd’), the paper illustrates the ways in which the three orchestration processes are enhanced in Solver Brokerages. It reveals that while knowledge mobility and appropriability processes can be enhanced by activities under the control of the Solver Brokerage, stability is largely determined by innovation seeking organizations and the innovation providers. The paper concludes that broker-provided value-added ‘orchestration’ services need to enable knowledge mobility and appropriability, and to ensure that ‘unsuccessful’ innovation seekers and providers appropriate sufficient value to participate again.
... @BULLET La primera se plantea si debe ser la propia empresa la que establezca los socios con los que va a colaborar o si, por el contrario, esta tarea debe quedar en manos de intermediarios. Existen varias posiciones al respecto: por ejemplo, Lee et al. (2010) proponen un modelo que defiende la existencia de intermediarios cuya misión será organizar redes y fomentar la confianza entre los distintos participantes en ellas; asimismo, Spithoven et al. (2010) analizan la importancia de los centros de investigación colectivos para desarrollar la capacidad de absorción de conocimiento de las empresas, facilitándoles así que lleven a cabo actividades entrantes; sin embargo, aunque parezca probado que el recurso a intermediarios promueve tanto las actividades entrantes como las salientes de la IA (Gwyne, 2007), su uso constituye aún un desafío en la gestión de este paradigma (Sieg et al., 2010) Un último aspecto que se debe considerar relacionado con el proceso de IA se refiere a la captura del valor creado en su desarrollo. Esto es, a cómo lograr obtener rendimientos , apropiables por la organización, de las prácticas de IA. ...
Chapter
Full-text available
El paradigma de la Open Innovation o Innovación Abierta (IA) podría ser entendido como la antítesis del modelo tradicional de integración vertical de los procesos de innovación en la empresa, en el que las actividades de I+D se desarrollan internamente, promoviendo el desarrollo de productos que posteriormente son elaborados y comercializados por la propia organización. En la actualidad, la definición comúnmente aceptada describe la IA como el uso por parte de las organizaciones de las entradas y salidas de conocimiento al objeto de acelerar la innovación interna y expandir el mercado para el uso externo de la misma. En otras palabras, es el paradigma que asume que las empresas pueden y deben hacer uso tanto del conocimiento externo como del interno, y deben utilizar los diferentes medios de acceso al mercado, si esperan desarrollar su tecnología. En este capítulo, una vez revisadas las principales aportaciones respecto del concepto que define la Innovación Abierta, a continuación trataremos de establecer un marco teórico que recoja las aportaciones más relevantes realizadas en este campo y que permita sentar las bases para una mejor comprensión de este paradigma. Para ello, distinguiremos entre contenido, contexto y proceso de la IA.
... Balancing the level of risk and actual involvement in order to maintain a working relationship with potential and current customers is a trial for most organizations investing in open innovation projects. Amongst the foremost concerns are A) Ensuring Collaborative Participation B) Risk Management and C) Maintaining Product Quality and Innovative Focus (Chesbrough, 2003;Enkel, Kausch & Gassmann, 2005;Enkel, Perez-Freije & Gassmann, 2005;Collins, 2006;Gwynne, 2007;. ...
... It should, however, be kept in mind that ideas and practice similar to open innovation (e.g. in the pharmaceutical industry) existed before the term was introduced; the novelty lies in the delineation of mindsets and organizational practices, and technological media that assists its implementation (e.g. Gwynne, 2007;Dodgson et al., 2006). Open innovation should, further, be distinguished from outsourcing strategies as those generally seek to transfer work to low-cost providers while open innovation is about finding good ideas and bringing them in to the company to enhance and capitalize on internal capabilities (Huston & Sakkab, 2006;Witzeman et al., 2006). ...
... As an effect, firms trying to increase their innovation initiatives are using the services of other actors to find external sources of innovation. These actors called knowledge brokers are institutions bringing together firms, individual inventors, and people with problems to find solutions, and vice versa (Gwynne, 2007). However, networking can also include cooperation with other partners not necessarily in the same industry. ...
Article
Full-text available
In recent years, there has been a tendency to evolve the innovation process into a flexible model known as Open Innovation where innovation takes place with several external actors. Nevertheless, although organizations are applying Open Innovation within networks, there is still a poor understanding of the mechanisms that help integrate the innovation activities with other actors. This paper explores the integration mechanisms used in inter-organizational networks for Open Innovation Projects (OIPs) with six organizations representing two types of innovators, private firms and academic institutions, as well as a nexus agency that acts as an integrator between them. Our results show that besides the 21 categories of integration mechanisms obtained from an extensive literature review, six new categories of mechanisms apply particularly to OIPs i.e. strategic prioritization, government incentives, specific trading controls, environmental exchange, learning curve techniques, and compatible technology infrastructure. In addition, we propose a conceptual framework to study integration mechanisms in OIPs at the analysis level of inter-organizational networks within several types of Open Innovation actors. This study expands the literature in integration mechanisms that solely consider its application inside an organization. Likewise, it shows that in OIPs it is not sufficient to manage the integration of the innovation process like an individual function, but it needs to be done as an integrated chain of processes supported by specific mechanisms.
... Third, while our study was able to find significant relationships between relevant OI variables showing the potential of openness, its scope did not allow focusing on some of the actual challenges related to OI execution (Gwynne, 2007). A good example of these challenges is that OI practices do not happen alone but there should be a person or group of 1185 Open innovation in specialized SMEs persons conducting them. ...
Article
Purpose The purpose of this paper is to explore the influence that adopting open innovation (OI) has on the innovativeness and performance of specialized small and medium-sized enterprises (SMEs). This paper also examines the adoption of OI within a firm’s practices and models, and within the three dimensions of firm sustainability. Design/methodology/approach Survey data from 48 specialized SMEs manufacturing supercars were analyzed using partial least squares structural equation modeling. SmartPLS software was used to conduct a path analysis and test the proposed framework. Findings The findings suggest that high adoption of OI models tends to increase firm innovativeness. Similarly, the adoption of OI practices has a positive effect on innovativeness but to a lesser extent than OI models. The moderation results of innovativeness further show that OI models and practices can benefit the performance of SMEs. Specifically, two dimensions of performance – environmental and social performance – were found to be greatly influenced by OI. Research limitations/implications Due to parsimony in the investigated model, this study only focuses on OI adoption as practices and models without considering its drivers or other contingency factors. Practical implications This paper could help practitioners in SMEs better understand the benefits of adopting OI to be more innovative but also more sustainable. Originality/value This study contributes to the literature on the role of OI practices and models regarding the dimensions of firm sustainability performance by being the first paper to investigate this relationship in the context of small and medium manufacturers of supercars.
... Third, while our study was able to find significant relationships between relevant OI variables showing the potential of openness, its scope did not allow focusing on some of the actual challenges related to OI execution (Gwynne, 2007). A good example of these challenges is that OI practices do not happen alone but there should be a person or group of 1185 Open innovation in specialized SMEs persons conducting them. ...
Conference Paper
Researchers have shown the advantages of adopting Open Innovation (OI) practices in different settings. However, findings seem less consistent in SMEs where adopting more open approaches could seem as a latent risk to lose the firm´s specialized resources and hinder the firm performance. This paper challenges this perception and explores the influence that adopting OI in terms of practices could have not only on the economic outcome but also in the other two dimensions of firm sustainability performance i.e. environmental and social. The analyzed data was collected through a survey of 48 specialized SMEs making supercars i.e. one-of-a-kind vehicles with a high degree of performance, technology, and design. The results show that these specialized manufacturing SMEs also adopt OI practices, emphasizing more inbound practices. In general, the adoption of OI practices has a significant effect on firms' innovativeness, which in turn is significant in their environmental and social performance. These findings, while preliminary, suggest that adopting different innovation practices could enhance the sustainability performance of manufacturing SMEs.
... The research on open innovation has been initiated by conceptual work (Berkhout et al., 2006;Chesbrough, 2003b;von Hippel & von Krogh, 2006) and some first case studies-highlighting open innovation instruments such as spin-in, spin-outs, outsourcing R&D, technology in-sourcing (Chesbrough, 2003a;Chesbrough, 2003c;Chesbrough, 2006;Gwynne, 2007), user integration kits (Piller & Walcher, 2006) and open innovation platforms, such as Procter & Gambles "Connect & Develop" (Dodgson et al., 2006;Huston & Sakkab, 2006). Further research has looked at understanding the underlying motivation of firms engaging in open innovation and how the individual employee can be stimulated to participate in an open innovation process (Henkel, 2006;West & Gallagher, 2006). ...
Article
Full-text available
When, on 21st September 2006, 'The Economist' compared incumbent telecommunication operators with dinosaurs that could soon face extinction, most readers were ready to agree. The mixture of declining revenues and fierce competition was believed to shake the market and soon to dethrone former national champions. However, there are ways to fight that extinction and one way is to open up for competitive advantage. This paper reflects on a case study at Deutsche Telekom, the German national telecommunication operator. The aim of this study is to analyse to what extent the open innovation paradigm has been embraced inside this now multinational company. Using empirical evidence from 15 in-depth interviews, we identify 11 open innovation instruments and detail their value contribution. We can show that Deutsche Telekom has successfully enhanced its innovation capacity by opening up its traditional development process and embracing external creativity and knowledge resources.
Article
OVERVIEW: In addition to acquiring external technology, many industrial firms now seek to license their technology out to external partners. These technology out-licensing activities promise important monetary and non-monetary benefits that allow firms to profit from technologies beyond their traditional business lines. Some pioneering companies achieve major benefits from active out-licensing programs. Most other firms, however, experience managerial difficulties in implementing active out-licensing strategies. This article builds on expert interviews with managers in 30 industrial firms to highlight three organizational approaches for implementing active out-licensing programs: structural organization, project organization, and participatory organization. Based on evidence from the interviews, the article presents a six-step procedure for successfully executing an active out-licensing program.
Conference Paper
This paper examines the individual IS manager's ability to exploit current IT capabilities and explore new technology innovations. It extends the concept of ambidexterity, which is often studied at the firm or business unit level, to the individual level, and draws from open innovation theory to examine how the ability of an individual IS manager to explore and exploit is associated with their degree of external and internal connectedness. The research model is tested through a survey of 67 IS managers from a large financial services company. The results show that external connectedness is strongly and positively associated with an IS manager's ability to innovate while internal connectedness is negatively associated with exploration. In addition, the degree to which individual IS managers simultaneously engage in exploration and exploitation (i.e. ambidexterity) is found to be positively associated with individual performance.
Chapter
Mit der Umstellung der Mobilität auf elektrische Antriebsformen ändert sich die Wertschöpfungskette. Neue Fahrzeugkomponenten werden ebenso benötigt wie neue Infrastrukturen und Dienstleistungen. Diese Neuordnung des Marktes eröffnet große Potenziale sowohl für etablierte Akteure der Automobilindustrie, als auch für andere Wertschöpfungsbeteiligte wie Energieversorger oder Unternehmen anderer Industriezweige [14].
Article
Purpose – This paper aims to explore the ways in which firms utilise hierarchical relationships and the market system to supply and acquire intellectual property (IP) and/or innovation capabilities from sources external to the firm. Design/methodology/approach – The authors conduct a field study to explore emerging governance structures for open innovation, using multiple data sources including documents (e.g. white papers) and interviews published by the firms studied, analysis of the firms' web-based systems (where applicable), secondary content (e.g. news articles) and elite interviews with key personnel. Findings – The analysis of seven exemplars of open innovation reveals that inter-organisational relationships that facilitate open innovation can be categorised based on whether they are mediated or direct, and seek to exchange intellectual property or innovation capability. Using this categorisation, the authors present an analysis that reveals four governance structures along ten dimensions, and discuss the influence of knowledge dispersion, uncertainty and transaction costs on the emergence of such structures. The authors conclude that the appropriateness of hierarchical/market relationships or intermediaries to source IP and/or innovation capability is dependent on the information asymmetry in relation to the existence and availability of potential solutions/solvers; the suitability of potential innovation partners (solution providers and solvers); and the acquisition process for external innovations (including problem specification, solution evaluation, transfer, etc.). Research limitations/implications – The research is exploratory in nature, and designed to serve as a foundation for future research efforts. In particular, the work highlights the need for research that takes an inter-organisational perspective on facilitating open innovation. Practical implications – The research highlights the prominence of information asymmetry as a key issue in choosing and designing appropriate governance structures for open innovation. Originality/value – The paper presents an exploratory study of an emerging, and consequently under-researched phenomenon.
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