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Does Social Inducement Lead to Higher Open Innovation Investment? An Experimental Study

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  • Shuanping Dai

    (the Institute for East Asian Studies, and Mercator School of Management, University of Duisburg-Essen, 47057 Duisburg, Germany)

  • Guanzhong Yang

    (the IN-EAST School of Advanced Studies, University of Duisburg-Essen, 47057 Duisburg, Germany)

Abstract

This study, by conducting a laboratory experiment, investigates whether social inducement can be an external instrument to promote open innovation. The study’s findings suggest that social inducement, on average, leads subjects to invest more in open innovation projects. In particular, in an asymmetric inducement setting, both induced and non-induced subjects invest more and are more active in open innovation compared to a full inducement setting. Furthermore, economic uncertainty increases the effectiveness of social inducement, suggesting that open innovation is easier to promote in the presence of economic uncertainty. Our findings may suggest practitioners and policymakers applying public channels to communicate open innovation concepts with the public, which in turn helps the adoption of open innovation.

Suggested Citation

  • Shuanping Dai & Guanzhong Yang, 2020. "Does Social Inducement Lead to Higher Open Innovation Investment? An Experimental Study," Sustainability, MDPI, vol. 12(5), pages 1-17, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:5:p:2115-:d:330395
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    Keywords

    open innovation; social inducement; economic uncertainty; asymmetric inducement;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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