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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)

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.

Suggested Citation

  • Hagedoorn, John & Ridder, Ann-Kristin, 2012. "Open innovation, contracts, and intellectual property rights: an exploratory empirical study," MERIT Working Papers 025, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2012025
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    File URL: https://www.merit.unu.edu/publications/wppdf/2012/wp2012-025.pdf
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    References listed on IDEAS

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    6. 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, pages 1533-1549.
    7. Grimpe, Christoph & Sofka, Wolfgang, 2009. "Search patterns and absorptive capacity: Low- and high-technology sectors in European countries," Research Policy, Elsevier, pages 495-506.
    8. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Henkel, Joachim & Schöberl, Simone & Alexy, Oliver, 2014. "The emergence of openness: How and why firms adopt selective revealing in open innovation," Research Policy, Elsevier, pages 879-890.
    2. repec:eee:tefoso:v:120:y:2017:i:c:p:252-260 is not listed on IDEAS

    More about this item

    Keywords

    open innovation; contracts; intellectual property rights;

    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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