Sengupta, A. and Sena, V. (2020) Impact of open innovation on industries and firms – A dynamic complex systems view. Technological Forecasting and Social Change, 159. 120199. ISSN 0040-1625
Abstract
This paper develops novel behavioural models of open innovation (OI) for competitive markets and uses them to compare the impact of two types of OI frameworks – open source (OS) and patent-licensing (PL). The dynamic consequences of OI, for both OS and PL, are studied using a complex adaptive systems approach. We examine how profits, technology levels, R&D investment, technology adoption and market structure evolve under each and are impacted by underlying market characteristics. While both OS and PL are found to be equivalent in technology outcomes, OS comes with additional advantages to participating firms. Firms in the OS framework earn higher profit and are more efficient with their R&D investments. The industry is less concentrated under OS than under PL, except when market size is very large. In both frameworks, consumer preference for new product adoption has a significant impact. When consumers adopt newly introduced products relatively quickly, market concentration is the higher and overall rate of technological progress slower. These results contribute towards a deeper theoretical understanding of OI, opening new avenues for future research.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2020 Elsevier Inc. This is an author produced version of a paper subsequently published in Technological Forecasting and Social Change. Uploaded in accordance with the publisher's self-archiving policy. Article available under the terms of the CC-BY-NC-ND licence (https://creativecommons.org/licenses/by-nc-nd/4.0/). |
Keywords: | Open innovation; Open source; Patent licensing; Complexity; Agent based model |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 21 Jul 2020 10:48 |
Last Modified: | 17 Jan 2022 01:38 |
Status: | Published |
Publisher: | Elsevier BV |
Refereed: | Yes |
Identification Number: | 10.1016/j.techfore.2020.120199 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:163502 |