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Open innovation, contracts, and intellectual property rights: an exploratory empirical study

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  • Hagedoorn, John

    ()
    (UNU-MERIT/MGSoG, and Department of Organization & Strategy, School of Business and Economics, Maastricht University)

  • Ridder, Ann-Kristin

    ()
    (Department of Organization & Strategy, School of Business and Economics, Maastricht University)

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    Abstract

    Our exploratory empirical study, based on a series of in-depth interviews and a survey of firms, searches for answers on a number of questions that deal with the role of formal contracts and intellectual property rights in the context of open innovation. We find that firms active in open innovation have a strong preference for the governance of their open innovation relationships through formal contracts. These contracts are relevant from both a control and a process monitoring perspective. Also, despite the open nature of open innovation, firms still see intellectual property rights as highly relevant to the protection of their innovative capabilities. In a first attempt to explain this preference for intellectual property rights by open innovation firms, we find the degree of openness of firms, their legalistic attitude, and the competitive dynamics of their product market environment to be related to this preference.

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    File URL: http://www.merit.unu.edu/publications/wppdf/2012/wp2012-025.pdf
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    Bibliographic Info

    Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 025.

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    Date of creation: 2012
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    Handle: RePEc:unm:unumer:2012025

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    Related research

    Keywords: open innovation; contracts; intellectual property rights;

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    1. Muge Ozman, 2008. "The Two Faces of Open Innovation: NetworkExternalities and Learning," Working Papers of BETA 2008-24, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
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    7. Oster, Sharon M., 1999. "Modern Competitive Analysis," OUP Catalogue, Oxford University Press, edition 3, number 9780195119411.
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    11. Lee, Sungjoo & Park, Gwangman & Yoon, Byungun & Park, Jinwoo, 2010. "Open innovation in SMEs--An intermediated network model," Research Policy, Elsevier, vol. 39(2), pages 290-300, March.
    12. Christensen, Jens Froslev & Olesen, Michael Holm & Kjaer, Jonas Sorth, 2005. "The industrial dynamics of Open Innovation--Evidence from the transformation of consumer electronics," Research Policy, Elsevier, vol. 34(10), pages 1533-1549, December.
    13. Dahlander, Linus & Gann, David M., 2010. "How open is innovation?," Research Policy, Elsevier, vol. 39(6), pages 699-709, July.
    14. Tuija Luoma & Jaakko Paasi & Katri Valkokari, 2010. "Intellectual Property In Inter-Organisational Relationships — Findings From An Interview Study," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 14(03), pages 399-414.
    15. Henkel, Joachim, 2006. "Selective revealing in open innovation processes: The case of embedded Linux," Research Policy, Elsevier, vol. 35(7), pages 953-969, September.
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