Dismantling of the Inverted U-Curve of Open Innovation

Abstract

Abstract:The purpose of this study is to address the following research question: What is the relationship between open innovation and firm performance? The study built up a research framework with three factors-i.e., open innovation strategy, time scope, and industry condition-to find out the concrete open innovation effects on firm performance. This study adopted four different research methods. Firstly, we applied the aforementioned factors to a game of life simulation in order to identify the concrete differences of open innovation effects on firm performance. Secondly, the study examined the real dynamics of open innovation effects on firm performance in the aircraft industry-one of the oldest modern industries-through a quantitative patent analysis. It then looked into the effects of major factors that impact open innovation effects. Thirdly, this study developed a mathematical model and tried to open the black box of open innovation effects on firm performance. Lastly, the study logically compiled research on open innovation effects on firm performance through the presentation of a causal loop model and derived the possible implications.

Building Sustainable Development through Technology Transfer in a Romanian University

“…The impact of open innovation on business performance is very dynamic and appears in unpredictable forms [56]. Nevertheless, in the context of "knowledge capitalism", universities become the means of competition for global leadership in the high technologies [57].…”

Open Innovation of James Watt and Steve Jobs: Insights for Sustainability of Economic Growth

“…Firstly, factors for dismantling the inverted U-Curve of open innovation were analyzed in relation to the open innovation network perspective [57][58][59]. Secondly, effective incentive design to reduce food waste was analyzed through a natural experiment of policy change from a community-based charge to a radio-frequency identification-based (RFID) weight charge, in relation to the RFID open innovation perspective [60,61].…”

Social Trust and Open Innovation in an Informal Economy: The Emergence of Shenzhen Mobile Phone Industry

“…Compared to a closed approach to innovation, open innovation can improve a firm's capacity to absorb and integrate external knowledge [12], and maximize its commercialization efforts from absorbing outside sources [13]. Given this importance of open innovation, most existing studies have focused on governance approaches for enhancing outcomes of open innovation [14], search heuristics for external sources and outside knowledge [15], collective learning with different partners [16], and its effects on firm performance [17,18].…”