Managing Open Innovation
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Managing Open Innovation

Connecting the Firm to External Knowledge

André Spithoven, Peter Teirlinck and Dirk Frantzen

Open innovation is about firms’ external relations with other firms and organisations. It is a topic which has attracted an immense amount of attention, but which has also been heavily criticised due to the diversity of the ideas and fuzziness of its key concepts. To date, the bulk of the literature on open innovation draws on case study material to illustrate the operation of firms in an anecdotal way. By contrast, this book examines open innovation practices by using large-scale datasets and stresses their impact on firm performance. The authors examine four key issues: differences between firms in open innovation practices, public funding to enhance external relations, R & D outsourcing of firms, and the role of human resources in R & D and innovation.
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Chapter 3: A Comparative Analysis of Open Innovation and the Relation between Research Intensity and Product Innovativeness

André Spithoven, Peter Teirlinck and Dirk Frantzen


3.1 INTRODUCTION In recent years firms have brought about significant change in their innovation management. They used to invest heavily in specialised in-house R&D departments to bring about innovation. This model has recently ceded ground to a more ‘open’ innovation model, in which the research strategies of innovative firms increasingly rely on external knowledge. This encourages active external information sourcing and, in particular, research cooperation, and implies a profound reorganisation of the research process with a view to internalising external ideas (Chesbrough and Rosenbloom, 2002; Chesbrough, 2003a; Chesbrough and Crowther, 2006; Huston and Sakkab, 2006). Open innovation also implies a changing attitude to the appropriability of new ideas, since this may occur not only through product innovation, but through their sale in disembodied form, through licensing, trademarks, and so on. It might, therefore, be of great interest to us to reconsider the relation between research intensity and product innovativeness. Since 2000 a new, econometric literature has improved our understanding of the relationship between innovation and firm performance by estimating structural models to explain both the input and output stages of the innovation process, as well as its impact on productivity or turnover and employment growth (see, especially, the influential studies by Crépon et al., 1998; Lööf and Heshmati, 2002, 2006; Klomp and Van Leeuwen, 2001; Van Leeuwen and Klomp, 2006; and Griffith et al., 2006). It also pays due attention to the problems of endogeneity and sample selection, which have hampered earlier work. 65 66 Firms react...

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