Paradigm Shift? Open Innovation and the Innovative Performance of EU Firms

  1. Battisti, Giuliana 1
  2. Gallego, Jorge 2
  3. Rubalcaba, Luis 2
  4. Windrum, Paul 3
  1. 1 Warwick Business School
  2. 2 U. of Alcala
  3. 3 Nottingham U.
Mostrar afiliaciones +
Revista:
Academy of Management Proceedings

ISSN: 0065-0668,  2151-6561

Año de publicación: 2013

Volumen: 2013

Número: 1

Páginas: 1-34

Tipo: Artículo

DOI: 10.5465/AMBPP.2013.15296ABSTRACT GOOGLE SCHOLAR lock_openAcceso abierto editor

Otras publicaciones en: Academy of Management Proceedings

Resumen

It has been suggested that a paradigm shift is taking place, from the old model ofproduct innovation based on in-house R&D, to a new model based on the intensive use ofexternal sources (search depth). We test this using Eurostat CIS4 data for 40 sectors in 18European countries. The findings of estimated GLM models suggest a more nuancedunderstanding of the role of external search is required. Internal R&D, rather than externalsearch depth, are found to be the key factors affecting the performance of innovationleaders. Further, we find no evidence of a substitution effect between R&D and externalsources for innovation leaders. External search is identified as an important factoraffecting the performance of innovation followers. There is also evidence of a substitutioneffect amongst these particular firms, indicating they replace formal R&D with openness,in order to acquire the information needed to catch-up with innovation leaders. Thesefindings are consistent with the old innovation model, cautioning against the suggestionthat a paradigm shift has occurred.

Referencias bibliográficas

  • Abernathy, W.J. and Utterback, J.M. (1975) A dynamic model of process and product innovation, Omega, 3(6): 639–656.
  • Almeida, P. (1996) Knowledge sourcing by foreign multinationals: Patent citation analysis in the U.S. semiconductor industry, Strategic Management Journal, 17 (Winter Special): 155- 165.
  • Almirall, E. and Casadesus-Masanell, R. (2010) Open versus closed innovation: A model of discovery and divergence, Academy of Management Review, 35(1): 27–47.
  • Baldwin C.Y. and Clark K. 2000, Design Rules, Vol. 1: The Power of Modularity, Boston, MA: MIT Press.
  • Battisti, G. and Stoneman, P. (2003) Inter firm and intra firm effects in the diffusion of new process technologies, Research Policy, 32 (8): 1641-1655.
  • Becker, W. and Dietz, J.R. (2004) R&D cooperation and innovation activities of firms: Evidence for the German manufacturing industry, Research Policy, 33(2): 209-223.
  • Belussi, F., Sammarra, A. and Sedita, S.R. (2008) Managing long distance and localized learning in the Emilia Romagna life science cluster, European Planning Studies, 16(5): 665 – 692.
  • Blau, J. (2007) Philips tears down Eindhoven R&D fence, Research Technology Management, 50(6): 9-10.
  • Autio, E., Sapienza, H.J., and Almeida, J.G. (2000) Effects of age at entry, knowledge intensity and imitability on international growth, Academy of Management Journal, 43: 909- 924.
  • Aw, B.Y. and Hwang A.R. (1995) Productivity in the export market: A firm level analysis, Journal of Development Economics, 47:313–332.
  • Becker, S. and Egger, P. (2007) Endogenous product versus process innovation and a firm’s propensity to export, CESIFO Working Paper No. 1906.
  • Bernard, A. B., Jensen, J. B., Redding, S. J., and Schott, P. K. (2007) Firms in international trade, Journal of Economic Perspectives, 21(3): 105–130.
  • Bernard, A. and Jensen, J.B. (1999) Exceptional export performance: Cause, effect, or both? Journal of International Economics, 47: 1–25.
  • Breinlich, H. and Criscuolo, C. (2011) International trade in services: A portrait of importers and exporters, Journal of International Economics, 84(2): 188-206.
  • Cassiman, B., Golovko, E. and Martinez-Ros, E. (2010) Innovation, exports and productivity, International Journal of Industrial Organization, 28: 372–376.
  • Cassiman, B. and Veugelers, R. (2006) In search of complementarity in innovation strategy: Internal R&D and external knowledge acquisition, Management Science, 52(1): 68–82.
  • Chesbrough, H., (2003) Open Innovation: The New Imperative for Creating and Profiting from Technology, Harvard Business School Press, Boston, MA.
  • Chesbrough, H. (2006) ‘Open Innovation: A new paradigm for understanding industrial innovation’, In H. Chesbrough, W. Vanhaverbeke and J. West (eds.), Open Innovation: Researching a New Paradigm, Oxford: Oxford University Press.
  • Chesbrough, H. and Schwartz K. (2007) Innovating business models with co-development partnerships, Industrial Research Institute, 50: 55-59.
  • Chesbrough, H. (2011) Open services innovation: Rethinking your business to grow and compete in a new era, Josey-Bass, San Francisco.
  • Chiaroni, D., Vottorio C. and Frattini, F. (2008) Research section: Patterns of collaboration along the bio-pharmaceutical innovation process, Journal of Business Chemistry 5(1): 7-22.
  • Chung, W. & Alcácer, J. (2002). Knowledge Seeking and Location Choice of Foreign Direct Investment in the United States. Management Science, 48(12), 1534-1554.
  • Cohen, W.M. and Levinthal D.A. (1990) Absorptive capacity: a new perspective of learning and innovation, Administrative Science Quarterly, 35: 128–152.
  • Collins, L. (2006) Opening up the innovation process. Engineering Management Journal, 16(1): 14-17.
  • Crépon, B., Duguet, E., and Mairesse, J. (1998) Research, innovation, and productivity: An econometric analysis at the firm level. Economics of Innovation and New Technology, 7: 115- 158.
  • Dahlander, L. and Gann, D.M. (2010) How open is innovation?, Research Policy, 39(6): 699- 709.
  • Dosi, G. (1982) Technological paradigms and technological trajectories: A suggested interpretation of the determinants and directions of technical change, Research Policy, 11(3): 147-162.
  • Fabrizio, K.R. (2009) Absorptive capacity and the search for innovation, Research Policy, 38: 255–267.
  • Filippucci C, Drudi I, Papalia RB. (1996) Testing the relevance of Tobin’s approach for modelling consumption, Economic Notes, 25(2): 225–247.
  • Fritsch M. and Lukas R. (2001) Who cooperates on R&D?, Research Policy, 30(2): 297-312. Geroski, P. (2000) Models of technology diffusion, Research Policy, 29: 603-625.
  • Geroski, P. and Markides, C.C. (2005) Fast Second: How Smart Companies Bypass Radical Innovation To Enter and Conquer New Markets. San Francisco: Jossey-Bass.
  • Gianiodis, P.T., Ellisy, S.C. and Secchi, E. (2010) Advancing a typology of open innovation, International Journal of Innovation Management, 14(4): 531–572.
  • Görg, H. and Greenaway, D. (2004) Much ado about nothing? Do domestic firms really benefit from foreign direct investment?, World Bank Research Observer, 19(2): 171-197.
  • Grimpe, C. and Kaiser, U. (2010) Balancing internal and external knowledge acquisition: The gains and pains from R&D outsourcing, Journal of Management Studies, 47(8): 1483-1509.
  • Grimpe, C. and Sofka, W. (2009) Search patterns and absorptive capacity: Low- and hightechnology sectors in European countries, Research Policy, 38: 495–506.
  • Grupp, H. (Ed.). (1998) Foundation of the Economics of Innovation: Theory, Measurement and Practice, Cheltenham: Edward Elgar.
  • Harwing, R. (2004) Open innovation, Philips Research Password, 19: 1-13.
  • Hagedoorn, J. (1993) Understanding the rationale of strategic technology partnering: Inter organizational modes of cooperation and sectoral differences, Strategic Management Journal, 14: 371-385.
  • Hess, A.M. and Rothaermel, F.T. (2011) When are assets complementary? Star scientists, strategic alliances, and innovation in the pharmaceutical industry, Strategic Management Journal, Forthcoming: DOI: 10.1002/smj.916.
  • Huergo E. and Jaumandreu. J. (2004) Firms’ age, process innovation and productivity growth, International Journal of Industrial Organization, 22: 541– 559.
  • Klepper, S. (1996) Entry, exit, growth, and innovation over the product life cycle, American Economic Review, 86(3): 562-583.
  • Laursen K. and Salter, A. (2006) Open for innovation: the role of openness in explaining innovation performance among UK manufacturing firms, Strategic Management Journal, 27: 131–150.
  • Leiponen A and Helfat CE. (2003) Innovation objectives, knowledge sources and the benefit of breadth. Paper presented at What Do We Know About Innovation?: A Conference in Honour of Keith Pavitt, Freeman Centre, University of Sussex, Brighton, U.K.
  • Lettl, C., Herstatt, C., & Gemuenden, H.G. (2006). Users’ contributions to radical innovation: evidence from four cases in the field of medical equipment technology. R&D Management, 36, 251-272.
  • Lewin, A. Y., Massini, S., and Peeters, C. (2009). Why Are companies offshoring innovation? The emerging global race for talent, Journal of International Business Studies, 40(6): 901 - 925.
  • Link, A., Rothaermel, F. and Siegel, D. (2008) University technology transfer: An introduction to the special issue. Transactions on Engineering Management, 55(1): 5-8.
  • Lokshin, B., Belderbos, R. and Carree, M. (2008) The productivity effects of internal and external R&D: Evidence from a dynamic panel data model, Oxford Bulletin of Economics and Statistics, 70(3): 399–413.
  • Long, J. S. (1997) Regression Models for Categorical and Limited Dependent Variables, Thousand Oaks, CA: Sage.
  • Makino, S., Lau, C.-M., and Yeh, R.-S. (2002) Asset-exploitation versus asset-seeking: Implications for location choice of foreign direct investment from newly industrialized economies, Journal of International Business Studies, 33(3): 403-421.
  • Mansfield E. (1968), Industrial Research and Technological Innovation, W.W. Norton, New York.
  • Mansfield, E. (1998) Academic research and industrial innovation: An update of empirical findings, Research Policy, 26 (7-8): 773-776.
  • Markman, G.D., Siegel, D.S. and Wright, M. (2008) Research and technology commercialization, Journal of Management Studies, 45(8): 1401-1423.
  • Mohen, P., and Roller L. (2005) Complementarities in innovation policy, European Economic Review, 49: 1431-1450.
  • Mudambi, S.M. and Tallman, S. (2010) Make, buy or ally? Theoretical perspectives on knowledge process outsourcing through alliances, Journal of Management Studies, 47(8): 1434-1456.
  • Nelson, R R. and Winter, S.G. (1982) An Evolutionary Theory of Economic Change, Cambridge, Mass.: Belknap Press of Harvard University Press.
  • Neyens, I., Faems, D., and Sels, L. (2010) The impact of continuous and discontinuous alliance strategies on startup innovation performance, International Journal of Technology Management, 52(3/4): 392 – 410.
  • Papke, L. E. and J. Wooldridge (1996) Econometric methods for fractional response variables with an application to 401(k) plan participation rates, Journal of Applied Econometrics, 11: 619–632.
  • Parhankangas, A., Holmlund, P. and Kuusisto, T. (2003) Managing non-core technologies experiences from Finnish, Swedish and US Corporations, Technology Review, 149: 1-81.
  • Perkmann, M. and Walsh, K. (2007) University-industry relationships and open innovation: Towards a research agenda, International Journal of Management Reviews, 9: 259-280.
  • Piller, F.T. and Walcher, D. (2006) Toolkits for idea competitions: A novel method to integrate users in new product development. R&D Management, 36(3): 307 – 318.
  • Rothaermel, F.T. and Deeds, D.L. (2006) Alliance type, alliance experience and alliance management capability in high-technology ventures, Journal of Business Venturing, 21(4): 429–460.
  • Rothaermel F.T. and Hess A.M. (2007) Building dynamic capabilities: Innovation driven by individual, firm, and network level effects, Organization Science, 18(6): 898–921.
  • Roper, S. and Love, J. (2002) Innovation and export performance: Evidence from UK and German manufacturing plants, Research Policy, 31: 1087-1102.
  • Saviotti, P.P. (1985) An approach to the measurement of technology based on the hedonic price method and related methods, Technological Forecasting and Change, 29: 309-334.
  • Saviotti P.P. and Tricket A. (1993) The evolution of helicopter technology: 1940 – 1986, Economics of Innovation and New Technology, 2: 111-130.
  • Schnaars, S. P. (1994) Managing Imitation Strategies: How Later Entrants Seize Markets from Pioneers, New York: Free Press
  • Smith, P. (2004) Book review. Open innovation: The Open Innovation: The New Imperative for Creating and Profiting from Technology, Journal of Product Innovation Management, 21: 221-224.
  • Sofka, W. and Grimpe, C. (2010) Specialized search and innovation performance – evidence across Europe, R&D Management, 40(3): 310-323.
  • Song, M., Droge, C., Hanvanich, S., and Calantone, R. (2005) Marketing and technology resource complementarity: An analysis of their interaction effect in two environmental contexts, Strategic Management Journal, 26: 259-276.
  • Song, J., and Shin, J. (2008) The paradox of technological capabilities: A study of knowledge sourcing from host countries of overseas R&D operations, Journal of International Business Studies, 39(2): 291-303.
  • Swann, G.M.P. (1993) Identifying asymmetric competitor networks from characteristics data: application to the spreadsheet software market, Economic Journal, 103(147): 468-473.
  • Swann, G.M.P. (2009) The Economics of Innovation: An Introduction. Cheltenham: Edward Elgar.
  • Trajtenberg, M. (1989) The welfare analysis of product innovations with an application to CAT scanners, Journal of Political Economy, 97(2): 444-479.
  • Tushman, M.L. and Anderson, P. (1986) Technological discontinuities and organizational environments, Administrative Science Quarterly, 31: 439-465.
  • Teece, D.J. (2007) Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance, Strategic Management Journal, 28: 1319–1350.
  • UNCTAD World Investment Report 2012. New York and Geneva: United Nations.
  • van der Meer, H. (2007) Open innovation- the Dutch treat: Challenges in thinking in business models, Creativity and Innovation Management, 16(2): 192-202.
  • Veugelers, R. (1997) Internal R&D expenditure and external technology sourcing, Research Policy, 26: 303-315.
  • von Hippel, E. (1988) The Sources of Innovation. Oxford University Press: New York. Wakelin, K. (1998) Innovation and export behaviour at the firm level, Research Policy, 26: 829–841.
  • Wernerfelt, B. and Karnani. A. (1987) Competitive strategy under uncertainty, Strategic Management Journal, 8: 187-194.
  • WTO (2008) Statistics Database, International Trade and TariffsData. World Trade Organization. Available at www.wto.org.