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ICT outsourcing, user-driven and open innovation strategies in the generation of new data-based solution

  • Koski, Heli

Abstract: The reported empirical findings using survey data from 531 Finnish companies show that for digitalized data-based innovation generated for both firm’s own and market needs, the firm’s ICT-specific absorptive capacity matters more than its general absorptive capacity arising from the firms’ investments in R&D and intangible assets. User-driven innovators differ from companies that do not produce new data-based solutions for their own use in three major dimensions: 1) they tend to use selective ICT outsourcing strategy, 2) they tend to involve more internal units closely to innovation activities and 3) they tend to use wider external knowledge search strategy. In other words, firms using data for producing innovative solutions for their own needs balance their relatively open innovation strategy with the close in-house innovation collaboration among different units, and further employ an ICT strategy that relies selectively on a firm’s own ICT-specific absorptive capacity and external ICT expertise.

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Paper provided by The Research Institute of the Finnish Economy in its series ETLA Working Papers with number 7.

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Length: 26 pages
Date of creation: 21 Mar 2013
Date of revision:
Handle: RePEc:rif:wpaper:7
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  1. Vega-Jurado, Jaider & Gutiérrez-Gracia, Antonio & Fernández-de-Lucio, Ignacio & Manjarrés-Henri­quez, Liney, 2008. "The effect of external and internal factors on firms' product innovation," Research Policy, Elsevier, vol. 37(4), pages 616-632, May.
  2. Ester Martinez-Ros & Jose Labeaga, 2002. "The Relationship Between Firm Size and Innovation Activity: A Double Decision Approach," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(1), pages 35-50.
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