PurposePatents as one of the important components of intellectual capital are emerging as a new source for mining insights on open innovation (OI) practice of the organizations. Their role in value creation through collaboration and the inter-firm differences is yet to be explored in depth.Design/methodology/approachTo achieve the aim, survey data is analyzed to rank OI practices (collaboration) of the firms, while patent data are analyzed to carry out descriptive and bivariate analysis to study the inter-firm differences in collaboration.FindingsThe survey findings highlight mergers and acquisitions (M&A) and patent pooling as the top two preferred modes of OI, while from patent data M&A has emerged as a predominant OI practice for mainly nonresident firms. At the firm level characteristics, out of firm age, number of granted patents and firm size, firm age has been found to be somewhat significant in few cases of OI practices.Research limitations/implicationsIt provides an alternative source, in this case patent data to study open innovation capabilities of firms in India. There is contribution to the patent value theory from profit motive to deriving strategic decisions on collaboration.Practical implicationsThe managerial implications of this study lie in realizing granted patents as important business tools for seeking collaboration, tracing competitive intelligence and the geography of innovation of the firms' competitors.Originality/valueThe dataset of granted patents at the Indian Patent office (2005–2017), the sample of pharmaceutical firms drawn from this list of patents, patent data– based OI insights and the use of multiple imputation technique to missing data for meaningful insights are some of the unique aspects of this paper.
The paradigm shift in management from part to whole has led to a complete rethinking of the working system in the organizations today. Coupled with the globalization-led competitiveness, a pressing need for flexibility in management has become imperative. Open Innovation (OI) is one such practice which the organizations today are looking forward to cope with change, respond quickly to threats and opportunities and manage diverse and decentralized operations. OI which allows for the use of internal and external resources both, is being adopted across different organizations amidst diverse challenges to be met. The life sciences sector is catching up with the OI paradigm though the change is gradual due to the challenges in breaking free from the shackles of traditional vertically integrated model. The pharmaceutical firms are grappling to adjust in this environment with administrative, regulatory, legal and management of intellectual property (IP) challenges. With this background, the present chapter aims to explore the flexibility of organizations in adopting and using the open innovation practice with special reference to intellectual property management (IPM). The discussion is centered on the main theme "open innovation as a flexibility exercise in managing the intellectual property with special reference to patents in the pharmaceutical sector". Based on the secondary data, i.e. varied sources of literature a conceptual discussion on the paradoxical nature and the synergistic effect of open innovation (OI) and intellectual property (IP) is attempted in this chapter. What different connotations/factors of flexibility are exercised in the pharmaceutical organizations to synergize the two processes and what challenges need to be handled in this context, are examined here. The findings of this study, though mainly contextual
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