Interfacing Intellectual Property Rights and Open Innovation

Open Innovation, Contracts, and Intellectual Property Rights: An Exploratory Empirical Study

“…This strategy is much more in line with what could be expected according to wellaccepted organizational economics theory (e.g. Williamson, 1985) that is closer to Chesbrough (2006a,b) than to a more 'radical' open innovation approach, as advocated by Baldwin andvon Hippel (2011), von Hippel andvon Krogh (2006) and Pénin (2011 (Almirall and Casadesus-Masanell, 2010;Hagedoorn and Hesen, 2007;Lee, Nystén-Haarala, and Huhtilaienen, 2010). Also, both the control and the monitoring dimension of contracts, the degree to which firms use contracts from a legal or from a practical process perspective, appear to be relevant for open innovation collaboration.…”

The role of contracts and intellectual property rights in open innovation

“…Rather than engaging in open disclosure and free revealing, firms seem to use formal contracts to organise their OI activities with specific partner firms. However, given the flexibility required by these innovative activities with a range of partners, where the objectives of collaboration might change over time, these OI contracts are not to be characterised as discrete, standard contracts but as subject to flexible private ordering (Hagedoorn and Hesen 2007;Almirall and Casadesus-Masanell 2010;Lee, Nystén-Haarala, and Huhtilaienen 2010). Also, both the control and the monitoring dimensions of contracts, the degree to which firms use contracts from a legal or from a practical process perspective, appear to be relevant for OI.…”

“…In other words, firms active in OI would face all the contractual intricacies that play a role in standard inter-firm exchanges. Lee (2009) and Lee, Nystén-Haarala, and Huhtilaienen (2010) also stress the role that inter-firm contracts and firms' contracting capabilities should play in OI to establish ownership and to control appropriation and contingencies. Interestingly, these authors add that, given the dynamic nature of OI, these OI contracts will to a large extent remain incomplete and subject to what we could refer to as flexible private ordering, where contract parties accept the incomplete nature of their contracts and adjust their joint efforts if circumstances so dictate (see also Almirall and Casadesus-Masanell 2010).…”

Knowledge in Open Innovation Process on an Example of Pharmaceutical Industry

“…In inbound exchanges, they take what is disclosed or published (public domain knowledge), participate in "open source" type community to jointly create codes or participate in open innovation platforms to unilaterally pose innovation tasks/problems and assignment (i.e. "crowd sourcing") [Lee et al 2014]. In outbound exchange, open innovation can be practiced by firms freely revealing or disclosing what they know or by their innovation "tasks", contributing back to the community where they took knowledge from or providing a kit for users to participate in the innovation process.…”