Purpose The purpose of this paper is to study the relationship between open innovation and the use of intellectual property rights (IPRs) in small- and medium-sized enterprises (SMEs). The authors consider patents, industrial designs (i.e. design patents in the USA), trademarks, and copyrights. Design/methodology/approach The relationships between open innovation, IPRs, and profitability are tested with random-effects panel regressions on data from the Spanish Community Innovation Survey for 2,873 firms spanning the years 2008-2013. Findings A key result is that SMEs do not benefit from open innovation or from patenting in the same way as larger firms. Furthermore, the results show that SMEs profit in different ways from IPR, depending on their size and the corresponding IPR. Research limitations/implications The different impact of IPRs on the efficiency of open innovation in firms of varying sizes highlights the importance of further investigation into IP strategies and into open innovation in SMEs. Practical implications Industrial designs are currently the most efficient IPR for SMEs to protect their intellectual property in open innovation collaborations. Depending on the company size, the use of different IPRs is recommended. Moreover, firms should seek to increase the efficiency of open innovation and the use of IPRs. Social implications The high impact of SMEs on employment highlights the importance of fomenting efficient innovation processes in such firms. Originality/value This paper opens the black box of IPR in relation to open innovation in SMEs, and draws distinctive conclusions with regards to patents, industrial designs, trademarks, and copyrights.

Purpose The exchange of knowledge in social networks is fundamental to innovation. Open, interactive, innovation requires collaboration through social networks. This social networking is increasingly carried out across the Internet through social media applications. The purpose of this study is to explore the use of social media in open innovation, and explain how this practice is carried out in small and medium-sized enterprises (SMEs). With less resources than large firms, SMEs both have a greater need for open innovation and a less resources to invest in the process. Design/methodology/approach In this paper, the authors study the case of open innovation in start-up Aurea Productiva and induce a framework for open innovation in SMEs powered by social media. Findings The authors explore how the main advantages of the Web 2.0 translate into opportunities, challenges and strategies for open innovation that can be directly applied by managers. Research limitations/implications The authors contribute to research on open innovation by social media and to research on the innovation process of SMEs. Future quantitative research could confirm and extend the authors’ findings. Practical implications Companies that want to fully exploit the benefits of social media can create a strategy that emphasizes coevolution of innovation and resources, sharing their vision and objectives and providing a framework for innovation. Originality/value The authors introduce an original analysis of opportunities, challenges and strategies for open innovation in SMEs.

Innovation is accelerated by heterogeneous knowledge, which is obtained in open innovation. We investigate whether there are limits to the beneficial degree of openness. Conceiving innovator group size as a trade-off between knowledge heterogeneity and coordination costs for innovating groups, we theorise about the impact of group size on innovative performance. We hypothesise that openness and internationalisation positively moderate this relationship, but that the positive effects are limited by the trade-off between knowledge heterogeneity and coordination costs. Through an empirical investigation using a large set of international patent data, we find support for our conceptual development and are able to conclude how many individuals those groups contain that generate the most innovative performance. Groups of three inventors have the most positive impact, and groups of two to eight inventors also generate positive effects. Science-based industries however allow for bigger groups than other industries, and supplier-dominated industries have smaller beneficial group sizes.

Artificial intelligence (AI) is changing the rules of the game in many industries. This case details how the combination of open innovation and artificial intelligence generates new opportunities in the tourism sector. Specifically, how to create new customer experiences through searching tools, social platforms and cognitive interfaces to make intelligent decisions. The authors show that it is possible to increase tourist satisfaction by offering a set of customized activities and experiences according to their personal characteristics and motivations. The combination of cutting-edge digital technologies makes it possible to design new services in an automated and cost-affordable manner. The experience has been carried out in Lanzarote (Canary Islands, Spain), with support of IBM's Watson system. This is a good example of AI-fueled innovation in services, which is adequate for courses on innovation, technology, entrepreneurship and competitive strategy.

La Farga Yourcoppersolutions is a bicentennial Catalan company that manufactures semi-finished copper products. As copper is a 100% recyclable material, much of the sector’s production comes from secondary copper, scrap, not from mined copper. In the case of La Farga, not only a good part of its output comes from recycled copper, but it is also a world leader in copper-recycling technology. The objective of the paper is to describe La Farga’s business model from the point of view of sustainability and the circular economy. What have been the causes and effects of recycling on the business model? Regarding the methodology, the work follows the research strategy of the case study. Both qualitative and quantitative data were collected from a variety of primary and secondary sources. Economic, social and environmental sustainability of the firm was assessed through financial and non-financial indicators; value-added generation and distribution were calculated from accounting data; and the circular business model was analysed via a thematic analysis: its components, innovation, enablers and barriers. Results show that the presence of barriers forces the implementation of circularity to be gradual and to combine linear and circular models to maintain competitiveness.