Open Innovation Intellectual Property Risk Maturity Model: An Approach to Measure Intellectual Property Risks of Software Firms Engaged in Open Innovation

Open innovation (OI) is key to sustainable product development and is increasingly gaining significance as the preferred model of innovation across industries. When compared to closed innovation, the protection of intellectual property (IP) that is created in open innovation is complex. For organisations engaging in OI, a sound IP management policy focusing on IP risk reduction plays a significant role in ensuring their sustained growth. Assessing the risks that are involved in IP management will enable firms to devise appropriate IP management strategies, which would ensure sufficient protection of an IP that is created in an OI model. Studies indicate that the risks which are associated with IP and risk management processes also vary with company segments that range from start-ups to micro, small, medium, and large organisations. This paper proposes an open innovation IP risk assessment model to compute the open innovation intellectual property risk score (OIIPRS) by employing an analytic hierarchy process. The OIIPRS indicates the IP risk levels of an organisation when it engages in open innovation with other organisations. The factors contributing to IP risk are identified and further classified as configurable IP risk factors, and the impact of these factors for the various company segments is also factored in when computing the OIIPRS. Further, an OI IP risk maturity model (OIIPRMM) is proposed. This model depicts the IP risk maturity of organisations based on the computed OIIPRS on an IP risk continuum, which categorises firms into five levels of IP risk maturity. The software firms can make use of the OIIPRMM to assess the level of IP risk and adopt proactive IP protection mechanisms while collaborating with other organisations.