DEVELOPMENT OF AN OPEN INNOVATION MODEL FOR R&D COLLABORATION BETWEEN LARGE FIRMS AND SMALL-MEDIUM ENTERPRISES (SMES) IN MANUFACTURING INDUSTRIES

Abstract

Mutual growth in the relation between large firms and small-medium enterprises (SMEs) has been an important issue that can be overcome with the concept of open innovation, which is the most continuous research topic in technology innovation. However, most previous studies on open innovation barely analyse both firm types, focusing only on one party. The aim of this study is to develop open innovation models for complementary cooperation between both types of firms in manufacturing industry. Based on a basic understanding of open innovation in each firm type, this study suggests open innovation typology with two main concepts of open innovation: knowledge interaction and technology innovation. Finally, open innovation models are developed, considering the cooperative participants, their relationships in open innovation processes, and open innovation activities illustrated through case studies. The results contribute to manage strategic open innovation between large firms and SMEs through various approaches of cooperation.

Open innovation in (young) SMEs

“…Verbano et al (2015) identifies three different OI profiles referring the openness of the innovation process phases and the involvement of external partners, which are With regard to opening up the innovation process in an integrated manner, the level technologyintensity of the firm is cited as a key driver that fosters the engagement in OI practices. By investigating different innovation types in complementary OI processes between SMEs and large firms, Jang et al (2017) further identify four different arrangements: bilateral, one-way, outsourcing, and integrated OI. The researchers found that complementary OI provides benefits for both large companies as well as for SMEs in order to promote growth and therefore firms' survival which leads to an enhancement of competitiveness.…”

Open innovation in specialized SMEs: the case of supercars

“…Second, OI between SMEs and large firms can be implemented and managed through various approaches of cooperation, being OI models the most developed ones (Jang et al, 2016). Therefore, it can be expected that open innovation as a model can have different elements organized in a variety of arrangements and strategies (Crema et al, 2014;Lazzarotti et al, 2010).…”

Processos em Relacionamentos Interorganizacionais para Desenvolvimento de Capacidade de Absorção em Startups

“…A trend has been perceived in which large corporations began to see opportunities for business innovation in startups, replacing equity with shared technology, to connect two worlds with less organizational costs and greater speed and agility (Weiblen & Chesbrough, 2015). Additionally, there are opposite traits of innovation between large companies and startups (Jang, Lee, & Yoon, 2017), suggesting that the latter need collaboration to enter the market with their disruptive technologies, and that large companies have technological success based on their large market scale and distribution channels, but they need to use the startup's agility and specialized knowledge to stimulate their innovation activities (Hogenhuis, van den Hende, & Hultink, 2016). These opposing traits, however, imply advantageous possibilities for complementary open innovation between large companies and startups (Jang et al, 2017), but they generate challenges for the management of these partnerships.…”