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Endogenous growth of open collaborative innovation communities: a supply-side perspective

Author

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  • Paolo E Giordani
  • Francesco Rullani
  • Lorenzo Zirulia

Abstract

This article analyzes the conditions under which open collaborative innovation communities can be generated and are able to grow and prosper in the long run. We build a formal model of the interaction between such communities and the alternative institutional setting based on intellectual property rights that we call Technology. The model accounts for both the communitarian social process taking place inside the community and for the presence of spillovers both across and within each institution. We prove that communities grow endogenously above a certain size threshold, and that such growth depends on supply-side mechanisms centered on the developers’ social motivations and interactions. In a comparative statics analysis, we show that the community’s innovative performance rests not only on its own characteristics (strength of social motivations and/or of protection of the community-produced knowledge) but also on factors outside its scope, namely, the institutional characteristics of Technology. We discuss the managerial and policy implications of our findings.

Suggested Citation

  • Paolo E Giordani & Francesco Rullani & Lorenzo Zirulia, 2018. "Endogenous growth of open collaborative innovation communities: a supply-side perspective," Industrial and Corporate Change, Oxford University Press, vol. 27(4), pages 745-762.
  • Handle: RePEc:oup:indcch:v:27:y:2018:i:4:p:745-762.
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    File URL: http://hdl.handle.net/10.1093/icc/dty004
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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy

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