Choosing between Closed and Open Innovation

Ching T. Liao, Mehdi Bagherzadeh, Stefan Markovic, Vesna Damnjanovic

Research output: Contribution to conferencePaperResearchpeer-review


This article investigates how moving from closed to open innovation is associated with innovation performance. It defines relative openness as the extent to which firms engage in open innovation relative to closed innovation. By focusing on two underlying forces: legitimation and complexity, we theorize a U-shaped relationship between relative openness and firms’ innovation performance. Empirical evidence based on survey data collected from 130 companies in Serbia supports the hypothesis. The result is robust under different model specifications. This article contributes to the open innovation literature by conceptualizing that closed and open innovation are two ends of a continuum and discussing its implications in innovation performance.
Original languageEnglish
Publication date2023
Number of pages37
Publication statusPublished - 2023
EventDRUID23 Conference - NOVA School of Business and Economics, Lisbon, Portugal
Duration: 10 Jun 202312 Jun 2023
Conference number: 44


ConferenceDRUID23 Conference
LocationNOVA School of Business and Economics
Internet address


  • Open innovation
  • Innovation performance
  • U-shaped relationship

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