A critical success factor in the practice of Open Innovation is the timely identification of opportunities for out-licensing a firm's technologies outside its core business. This can be particularly challenging for small-and medium-sized enterprise (SMEs), because of their focussed business portfolio, specialized knowledge basis, and limited financial resources that can be devoted to innovation activities. The paper illustrates a quick and easy-to-use methodology for the identification of viable opportunities for out-licensing a firm's technologies outside its core business. The method uses established TRIZ instruments in combination with non-financial weighting and ranking techniques and portfolio management tools. It has been developed by the authors in collaboration with an Italian SME working in the packaging industry.The role of SMEs in innovation and their impact on business is unquestionable. For instance, in the United Kingdom, SMEs account for 99% of businesses, 55% of non-government employment and 51% of turnover (SBS, 2001). These figures are common in most European countries. In the US, small enterprises accounted for 24% of all R&D expenses in 2005, compared with 4% in Enabling open innovation in SMEs r
Technology acquisition from external sources has been identified as a critical competence for sustained success in innovation, and research has paid a good deal of attention to studying its advantages, drawbacks, determinants, and outcomes. Traditionally, research
The practice of innovation management is developing fast. As new concepts emerge, exploratory studies are needed and case study research is often appropriate. To investigate the usage and quality of case study research in innovation management, all of the articles published in five top journals over 20 years (1997–2016) were reviewed. Case study research accounted for 818 of the published articles in this period (12%) and an evaluation template (termed case study evaluation template: CASET) was developed to objectively assess these articles against 10 quality criteria. It was found that the quality of case study research has often been low, although it has improved over time. Similarly, quality was found to fluctuate both within and between the different innovation journals. This indicates that the peer review process for case study research is not as robust as it should be. The assessment of individual articles using the evaluation template found significant deficiencies. Many articles: did not justify why case study research was appropriate; did not apply theoretical sampling criteria; were not transparent on how conclusions were drawn from the data; did not consider validity and reliability adequately; and did not go beyond description in their interpretation. However, the evaluation template also identified 23 “exemplary studies,” which clearly addressed nearly every criterion. Such exemplary studies provide innovation management researchers with “benchmark” reading, which can help shape their own research. This article makes four contributions to the innovation management discipline. First, the evaluation template and exemplary studies can help innovation researchers improve the quality of their case study research. Second, clear recommendations are given for how reviewers can use the template to make the peer review process more consistent and robust. Third, journal editors are encouraged to consider the implications of the findings for their particular journal. Fourth, the article should stimulate a long overdue debate on methodology in innovation management research, including the use of case study research.
Firms increasingly acquire technological knowledge from external sources to improve their innovation performance. This strategic approach is known as inbound open innovation. The existing empirical evidence regarding the impact of inbound open innovation on performance, however, is ambiguous. The equivocal results are due to moderating factors that influence a firm's ability to acquire technological knowledge from external sources and to transform it into innovation outputs. This paper focuses on a relevant yet overlooked category of moderating factors: organization of research and development (R&D). It explores two organizational mechanisms: one informal and external-oriented (involvement of external consultants in R&D activities) and one formalized and internal-oriented (existence of a dedicated R&D unit), in the acquisition of technological knowledge through R&D outsourcing, a particular contractual form for inbound open innovation.Drawing on a capabilities perspective and using a longitudinal dataset of 841 Spanish manufacturing firms observed over the period 1999-2007, this paper provides a fine-grained analysis of the moderating effects of the two organizational mechanisms. The involvement of external consultants in R&D activities strengthens the impact of inbound open innovation on innovation performance by increasing marginal benefits of acquiring external technological knowledge through R&D outsourcing. Moreover, it reduces the level of inbound open innovation to which the highest innovation performance corresponds. Instead, the existence of a dedicated R&D unit makes the firm less sensitive to changes in the level of inbound open innovation, by reducing marginal benefits of acquiring external technological knowledge through R&D outsourcing, and increases the level of inbound open innovation to which the highest innovation performance corresponds.The results regarding the role of informal and formalized R&D organizational mechanisms contribute to research on open innovation and absorptive capacity, and also inform managers as to what organizational mechanism is recommended to acquire external technological knowledge, depending on the objectives that the firm pursues.
This exploratory study investigates the relationship of plan-driven Stage-Gate and flexible Agile models with new product development performance through an original conceptualization that focuses on their underlying principles for managing uncertainty and the resulting changes. While Stage-Gate attempts to control uncertainty up-front to avoid later changes, Agile seeks to adapt to uncertainty and accommodate changes for a longer proportion of the development process. In addition, we examine the interaction effects of combining the two models. The analysis of survey data on 181 software developers shows that the adoption of Stage-Gate principles is negatively associated with speed and cost performance. For Agile, the use of sprints is positively related to new product quality, on-time and on-budget completion, while early and frequent user feedback would seem to prolong time-to-market. Finally, the results highlight a nuanced interaction between Stage-Gate and Agile, both positive and negative depending on the principles considered.
This paper takes a contingency view to investigate how the role of early adopters (EAs) in the diffusion process changes between platform and nonplatform innovations, what launch decisions firms take to leverage the role of EAs, and how these decisions change between platform and nonplatform innovations. Relying on an exploratory multiple case study of eight industrial product innovations launched in Italy in the 2000s, the paper suggests that the EAs of these innovations play two distinct roles in the diffusion process. The first role, called dissemination, sees EAs triggering and bolstering the propagation of information regarding their opinion about the value for money, properties, advantages, and disadvantages of the new product after they have bought and applied it in their operations. The second role, labeled imitation, consists of EAs inadvertently communicating to later buyers the fact that they have bought the new product, which propels imitative behavior and thus subsequent adoption. A key finding of the paper, which supports a contingency view of innovation diffusion, is that the dissemination role played by EAs has an impact on the adoption of platform innovations, whereas the imitation one is the mechanism through which EAs stimulate subsequent adoption in the case of nonplatform new products. Furthermore, the paper's results point to a constructive view of the process of launching an innovation, whereby firms target at launch different segments of EAs, whose identity is shaped depending on the platform versus nonplatform nature of the innovation and thus on the role they are expected to play in the diffusion process. Concerning managerial implications, this study provides a first tentative understanding of the launch decisions that product and marketing managers may use to target the most appropriate segments of EAs, to leverage their roles and ultimately to favor diffusion. As regards platform innovations, targeting decisions should be driven by the goal to improve the chances that EAs will be willing to disseminate their experience and opinion regarding the new product. As regards instead nonplatform innovations, firms should target EAs whose specific characteristics increase the likelihood of an imitative reaction by later buyers that fear to suffer a competitive disadvantage if they do not conform to EAs' behavior.
Technological resources in the form of patents, trade secrets, and know-how have become key assets for modern enterprises. This paper addresses a critical issue in technology and innovation management, namely, the commercial exploitation of technological resources resulting from research and development (R&D) investments. Extracting economic value from these resources by maximizing the benefits for shareholders is an extremely challenging task because technological resources are intangible, idiosyncratic, uncertain, predominantly tacit, and with poorly defined property rights. In their attempt to extract the maximum value from their technological resources, firms increasingly combine their internal exploitation through new product development (NPD) with external exploitation through licensing. However, most existing studies on NPD and technology licensing have treated the two exploitation paths independently and in isolation, which has resulted in two separate research streams using different theories and addressing different managerial challenges. The purpose of this paper is to contribute to filling this gap by developing and testing a comprehensive conceptual framework that simultaneously considers the antecedents affecting the successful implementation of NPD and licensing strategies as well as their consequences on firm profitability. The paper in particular investigates the effects of the interplay between technological resources and three types of complementary resources, marketing, manufacturing, and relational. We test the model using structural equation modeling on a sample of 733 Spanish manufacturing firms observed from 2003 to 2007. The data provide support for the existence of different paths to market firm technologies: an internal path, whereby the ownership of technological resources fully explains NPD performance, and an external path, whereby high intensity of marketing and relational resources reinforces the positive effect of technological resources on licensing performance. This sustains the relevance of the resource-based value-enhancing effects of complementary resources in licensing, as opposed to the motivation-reducing effects advanced by transaction cost-based literature. Moreover, the empirical analysis shows a substitution effect between NPD and licensing, whereby their simultaneous pursuit at intense levels is associated with lower profit margins. This provides evidence of the much theorized, but seldom tested, rent dissipation effect. These findings offer several contributions to research on licensing, NPD, open innovation, and the resource-based view of the firm. On a managerial level, they suggest that achieving maximum value from proprietary technologies may not entail exploiting them both through external and internal paths. Managers are also informed that the resource combinations that enhance licensing performance include marketing and relational resources
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