The Paradox of Openness: Appropriability, External Search and Collaboration

Keld Laursen, Ammon Salter

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    To innovate, firms often need to draw from, and collaborate with, a large number of actors from outside their organization. At the same time, firms need also to be focused on capturing the returns from their innovative ideas. This gives rise to a paradox of openness—the creation of innovations often requires openness, but the commercialization of innovations requires protection. Based on econometric analysis of data from a UK innovation survey, we find a concave relationship between firms’ breadth of external search and formal collaboration for innovation, and the strength of the firms’ appropriability strategies. We show that this concave relationship is stronger for breadth of formal collaboration than for external search. There is also partial evidence suggesting that the relationship is less pronounced for both external search and formal collaboration if firms do not draw ideas from or collaborate with competitors. We explore the implications of these findings for the literature on open innovation and innovation strategy.
    To innovate, firms often need to draw from, and collaborate with, a large number of actors from outside their organization. At the same time, firms need also to be focused on capturing the returns from their innovative ideas. This gives rise to a paradox of openness—the creation of innovations often requires openness, but the commercialization of innovations requires protection. Based on econometric analysis of data from a UK innovation survey, we find a concave relationship between firms’ breadth of external search and formal collaboration for innovation, and the strength of the firms’ appropriability strategies. We show that this concave relationship is stronger for breadth of formal collaboration than for external search. There is also partial evidence suggesting that the relationship is less pronounced for both external search and formal collaboration if firms do not draw ideas from or collaborate with competitors. We explore the implications of these findings for the literature on open innovation and innovation strategy.
    LanguageEnglish
    JournalResearch Policy
    Volume43
    Issue number5
    Pages867-878
    ISSN0048-7333
    DOIs
    StatePublished - 2014

    Keywords

      Cite this

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      The Paradox of Openness : Appropriability, External Search and Collaboration. / Laursen, Keld; Salter, Ammon.

      In: Research Policy, Vol. 43, No. 5, 2014, p. 867-878.

      Research output: Contribution to journalJournal articleResearchpeer-review

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      T2 - Research Policy

      AU - Laursen,Keld

      AU - Salter,Ammon

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      AB - To innovate, firms often need to draw from, and collaborate with, a large number of actors from outside their organization. At the same time, firms need also to be focused on capturing the returns from their innovative ideas. This gives rise to a paradox of openness—the creation of innovations often requires openness, but the commercialization of innovations requires protection. Based on econometric analysis of data from a UK innovation survey, we find a concave relationship between firms’ breadth of external search and formal collaboration for innovation, and the strength of the firms’ appropriability strategies. We show that this concave relationship is stronger for breadth of formal collaboration than for external search. There is also partial evidence suggesting that the relationship is less pronounced for both external search and formal collaboration if firms do not draw ideas from or collaborate with competitors. We explore the implications of these findings for the literature on open innovation and innovation strategy.

      KW - Appropriability strategy

      KW - Innovation

      KW - Breadth of openness

      KW - Innovation collaboration

      KW - Competitor collaboration

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