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The Market for Open Innovation
Abstract
For the second time, this study explores that market of open innovation accelerators (OIA),
organizations that help their clients to include external experts in all stages of an innovation project. We invited about 160 intermediaries to join a 90 min online survey investigating the OIA’s business model and environment, productivity, services offered, project specifics, and characteristics of their participant pool. In addition, we asked about estimates for the development of the open innovation market.
We find that OIAs can be clearly distinguished into two groups:
A first group runs an open innovation project on behalf of their clients and provides a solution to a given task.
The second group helps their clients in building own open innovation competences to engage in direct collaboration with external entities. The latter has a stronger focus on educational aspects.
...
... Considers the costs associated with developing an own platform or using existing (external) crowdsourcing platforms as intermediary Depends on existing crowdsourcing experience Platform specifies the size of the network of potential solvers Over the past decade, the market for crowdsourcing intermediaries has grown significantly (Diener & Piller, 2013). Some well-known examples include InnoCentive, NineSigma, IdeaConnection and Yet2. ...
... These intermediaries have a large global network of experts and professionals in diverse fields and play a mediating role by connecting the seeker firm with external solvers via their own web-based platform (Diener & Piller, 2013;Leicht et al., 2016). Because crowdsourcing intermediaries differ in expertise (Colombo et al., 2013;Diener & Piller, 2013), firms must select the right one, based on the nature and complexity of problem to be solved. ...
... These intermediaries have a large global network of experts and professionals in diverse fields and play a mediating role by connecting the seeker firm with external solvers via their own web-based platform (Diener & Piller, 2013;Leicht et al., 2016). Because crowdsourcing intermediaries differ in expertise (Colombo et al., 2013;Diener & Piller, 2013), firms must select the right one, based on the nature and complexity of problem to be solved. ...
Crowdsourcing has gained considerable traction over the past decade and has emerged as a powerful tool in the innovation process of organizations. Given its growing significance in practice, a profound understanding of the concept is crucial. The goal of this study is to develop a comprehensive understanding of designing crowdsourcing projects for innovation by identifying and analyzing critical design elements of crowdsourcing contests. Through synthesizing the principles of the social exchange theory and absorptive capacity, this study provides a novel conceptual configuration that accounts for both the attraction of solvers and the ability of the crowdsourcer to capture value from crowdsourcing contests. Therefore, this paper adopts a morphological approach to structure the four dimensions, namely, (i) task, (ii) crowd, (iii) platform and (iv) crowdsourcer, into a conceptual framework to present an integrated overview of the various crowdsourcing design options. The morphological analysis allows the possibility of identifying relevant interdependencies between design elements, based on the goals of the problem to be crowdsourced. In doing so, the paper aims to enrich the extant literature by providing a comprehensive overview of crowdsourcing and to serve as a blueprint for practitioners to make more informed decisions when designing and executing crowdsourcing projects.
... Whereas this first dimension is a rather general differentiation of activities in the innovation process, our second dimension is specific to open innovation. We suggest that open innovation (methods) be differentiated according to how external actors are identified and how collaborations are initiated (Diener and Piller, 2013). Following Erat and Krishnan (2012), a distinction can be made between an open call for participation and an open direct search (see Figure 10.1). ...
... In the last decade, crowdsourcing has gained relevance for both scholars and practitioners (Afuah and Tucci, 2012; ). Many crowdsourcing initiatives are administrated and governed by specialized intermediaries that offer crowdsourcing as a service (Dahlander and Piezunka, 2014;Diener and Piller, 2013;Lopez-Vega et al., 2016). Crowdsourcing intermediaries support the process by engaging large established communities of potential contributors and providing an Internet-enabled communication infrastructure for the effective dissemination of their clients' technology needs. ...
... Individuals who develop, share, and sell digital 3D models in their free time. This community is responsible for numerous innovative products in the digital value chain (Piller & Diener, 2013). Some makers also have their own AM machines. ...
... Open innovation implies to externally sourcing knowledge and ideas through the concept of "wisdom of crowds" (Surowiecki, 2005). Different types of external open sourcing strategies are tournaments, collaboration, open calls and open search for partners, which is called under the title of "crowdsourcing" (Afuah and Tucci, 2012;Boudreau and Lakhani, 2013;Diener and Piller, 2013;West and Sims, 2016). There are crucial similarities between these two kinds of external collaboration. ...
Nowadays, more firms tend to open up their innovation activities and obtain innovative solutions through collective wisdom by novel notion of crowdsourcing among crowds instead of individuals. This paper aims to contribute to the literature by highlighting some prominent topics in crowdsourcing as a new smart strategic approach. This is interesting to know how crowdsourcing strategies could be applied for the firm's strategic problem solving, not just focusing on how crowd systems and platforms operate. This paper responds how various types of crowdsourcing strategies as smart open innovative solutions contribute firms to solve their organizational open call problems. The research design was based on providing, collecting, classifying and reviewing different literature streams from different academic papers and scientific reports relevant to the concept of crowdsourcing by searching relevant keywords. The results show Crowd Communities as external collaboration sources contribute firms to solve their strategic innovative problems through open call platforms.
... Companies are concerned about the quality of output they get from solvers (Schuurman et al., 2012). Protection of the IPRs of participants by the crowdsourcing platforms is vital because crowdsourcing initiators can exploit the ideas and solutions presented by crowdsourcing participants before they purchase such solutions (de Beer et al., 2017;Mazzola et al., 2018;Piller & Diener, 2013). This reason can also serve as fear on behalf of the participants who can see that solution seekers could potentially use their ideas without giving them credit or any reward (Hanine & Steils, 2019) and could feel motivated to contribute if participants trust the intentions of the solution seekers (Sun et al., 2015). ...
Although crowdsourcing is ubiquitous, it is unclear what factors affect the quality of contributions by participants in crowdsourcing activities. This study attempts to understand the mechanism of how perceived intellectual property rights (IPR) protection influences participant's contribution effort in crowdsourcing contests by analyzing the mediating role of intrinsic and extrinsic motivation and the moderating role of task complexity. For this purpose, data were collected through an online survey from members of a major crowdsourcing platform for seeking innovative solutions to problems across various industries. Partial least square based structural equation modeling (PLS-SEM) is employed for analyzing the data. The results show the new findings that (1) both intrinsic and extrinsic motivation influence contribution effort and the effect of extrinsic motivation is stronger; (2) IPR protection does not influence the contribution efforts of participants directly but indirectly via extrinsic motivation rather than intrinsic motivation; (3) the importance of IPR protection holds irrespective of the gender of the participants and the complexity of the task. The results indicate that a one-time prize might be insufficient for the participants to exert their full efforts in crowdsourcing contests if the resulting IPRs are not protected.
... Regarding customer co-creation, O'Hern and Rindfleisch (2008) distinguish various types of activities according to the degree of predetermined outcome and decision-making processes that lead to a result. Piller and Ihl (2013) further elaborate the role of social cooperation, which differentiates activities according to the settings and features of co-creation processes (see also Diener and Piller, 2010). Open labs as spaces for co-creation therefore expand the activities in closed While such practices certainly mean a departure from practices in which the participants follow prearranged patterns, it remains unclear to what extent they imply that people in the lab actually gain sovereignty over the subject matter in doing something for themselves. ...
Do-it-yourself activities of hackers or makers are accompanied by fundamental claims about the sovereignty of users in their treatment of technology. In Fab Labs and Maker Spaces, such claims are realised by giving users access to hardware for the fabrication and alteration of artefacts. In open laboratories where no such hardware is available, users establish sovereignty in other ways as they step beyond the design and construction of artefacts and get involved in a wider scope of sense-making and agenda-setting behaviours. Using the example of an open lab project on IT security for critical infrastructures, this paper tries to gain a better understanding of these behaviours. Due to the sensitivity of IT security, visitors of the lab are not allowed to get directly involved in the fabrication or alteration of technical architectures, algorithms, etc. Nevertheless, the visitors engage in a variety of other do-it-yourself activities in their approach to the subject matter and the project itself that add new facets to the notion of user sovereignty in hacking and making.
... Basically, these intermediaries assist the companies to fill the gaps in the execution capabilities and the necessary knowledge to make the open innovation initiative more effective [30]. In the literature, there is a wide range of denominations for these companies, such as, brokers [3]that act as connectors between companies and customers; infomediaries [16] that through discussion foruns and communities add information related to companies and products; innomediaries [30] that concentrate on aggregating and disseminating customer-generated knowledge; and accelerators [12] among others. These companies can operate in only one of these characteristics or in a combination of them. ...
Collaboration is gaining importance, especially those in which there is the participation of external individuals or groups in the innovation process both in the academy and in companies. However, measuring the impact of collaboration on business performance is not a trivial task. Particularly if it is considered that business performance should be measured through not only accounting measures but on a wider range of factors like project efficiency, impact on the internal team, preparation for the future, among others. This paper investigates the different aspects that affect the perception of improvements in the business performance due to collaboration. Companies that are using collaboration platforms as a new business approach were interviewed, analyzing the collaboration purpose, Information Technology (IT) infrastructure and the user acceptance of IT resources. Results show the relationship among these factors, and how they influence the business performance perception.
... We conducted 26 depth interviews with informants from 14 seeker firms that were actively engaged in crowdsourcing activities with the intermediary NineSigma. While intermediaries differ in their business model (Diener and Piller 2013), we decided to focus on clients of one intermediary to better distinguish differences in firm organization and capabilities while controlling for the intermediary. In addition, cooperation with one intermediary provided us easier access to its internal project database with additional data on each case. ...
In recent years, crowdsourcing has emerged as a promising open innovation strategy for firms searching for solutions to technical problems. Previous research has shown that crowdsourcing can provide quick access to distant knowledge at relatively low costs, when compared to other forms of innovation governance such as internal sourcing or contract research. Recent studies, however, indicate that firms differ considerably in their ability to reap the benefits from crowdsourcing. Drawing upon recent work on the microfoundations of capabilities, we hypothesize how three types of lower‐level organizational elements may affect gains from crowdsourcing: informal organizational roles, formal organizational roles, and knowledge processes. Following a mixed‐method research design and drawing on rich quantitative and qualitative data, we find that informal and formal organizational roles work through processes of knowledge articulation and codification in developing a firm's crowdsourcing capability. By going beyond the direct effects of the three antecedents, our research sheds light on the process of capability development for open innovation.
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While talking about successful entrepreneurship and value addition within an enterprise through innovation, one could comprehend that the innovation paradigm has been shifted from simple introduction of new thoughts and products to accumulation of diversified actions, actors, and agents along the process. Furthermore, when the innovation process is not being constrained within the closed nature of it, the process takes many forms during its evolution. Innovations have been seen as closed innovation or open innovation, depending on its nature of action, but contemporary world may have seen many forms of innovation, such as technological innovation, products/service innovation, process/production innovation, operational/management/organizational innovation, business model innovation, or disruptive innovation, though often they are robustly interrelated.
We conducted a research on the global market of artificial intelligence systems and technologies and its new stage of development. The relevance of this research is caused by recent economic slowdown, structural changes and imbalances of the world economy. The need for creating a new base of economic development for successful companies’ and countries’ competition in the world market sharply increased. Thus, we aimed to identify critical parameters, trends and barriers for such market’s development. Scientific interest to artificial intelligence (AI) as a subject of economic research steadily increases. At least, in the medium term, new large corporations will appear unprecedentedly quickly in those world economy industries that form consumer demand for goods and services. In certain industries, for example, in automotive ones, the use of AI is limited by natural restrictions. In some developed countries the use of AI is connected with calls for improving competitiveness of their social and economic development models and with low rates of economic growth. Development of the world market of artificial intelligence systems is at transitional stage, giving new opportunities for goods production improvement and economic growth all over the world. At the same time, the accruing foreign trade protectionism breaks global chains of added value and slows down dissemination of new technologies that promotes decline in productivity. Therefore effective instruments of the international cooperation are necessary for preserving past achievements. New system of competitive advantages and place of the world economy actors in the international division of labour has to be established. Developing the market of artificial intelligence systems will inevitably lead to searching for a new paradigm of national innovative systems’ advancement. This, in turn, will promote further aggravation of the competition between countries and between the largest multinational corporations. The AI and digital technologies has become a significant factor for the world economy development in the conditions of economic growth slowdown.; However, the positive effect from their implementation remains disputable. This factor will significantly define countries’ economic policy. In Russia, developments in the field of AI are promising, but their implementation demands complex institutional conditions . © 2019 Institute of Economics, Ural Branch of the Russian Academy of Sciences. All Rights Reserved.
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