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How does openness affect the importance of incentives for innovation?

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  • Fu, Xiaolan

Abstract

When firms open up to external resources for innovation, do internal incentives still matter? This paper investigates the moderating effect of open innovation on the relationship between incentives and innovation using a survey database of British firms. Whilst both openness and incentives are positively associated with innovation efficiency, a substitution effect is found between openness and incentives. Whilst long-term incentives appear to enhance efficiency to a greater extent than short-term incentives, the substitution effect of openness is stronger regarding long-term incentives.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 41 (2012)
Issue (Month): 3 ()
Pages: 512-523

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Handle: RePEc:eee:respol:v:41:y:2012:i:3:p:512-523

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Web page: http://www.elsevier.com/locate/respol

Related research

Keywords: Incentives; Open innovation; Innovative efficiency;

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References

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Cited by:
  1. I. Hasnas & L. Lambertini & A. Palestini, 2011. "Open Innovation in a Dynamic Cournot Duopoly," Working Papers wp753, Dipartimento Scienze Economiche, Universita' di Bologna.

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