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Open innovation, contracts, and intellectual property rights: an exploratory empirical study

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  • Hagedoorn, John

    (UNU-MERIT/MGSoG, and Department of Organization & Strategy, School of Business and Economics, Maastricht University)

  • Ridder, Ann-Kristin

    (Department of Organization & Strategy, School of Business and Economics, Maastricht University)

Abstract

Our exploratory empirical study, based on a series of in-depth interviews and a survey of firms, searches for answers on a number of questions that deal with the role of formal contracts and intellectual property rights in the context of open innovation. We find that firms active in open innovation have a strong preference for the governance of their open innovation relationships through formal contracts. These contracts are relevant from both a control and a process monitoring perspective. Also, despite the open nature of open innovation, firms still see intellectual property rights as highly relevant to the protection of their innovative capabilities. In a first attempt to explain this preference for intellectual property rights by open innovation firms, we find the degree of openness of firms, their legalistic attitude, and the competitive dynamics of their product market environment to be related to this preference.

Suggested Citation

  • Hagedoorn, John & Ridder, Ann-Kristin, 2012. "Open innovation, contracts, and intellectual property rights: an exploratory empirical study," MERIT Working Papers 2012-025, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2012025
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    File URL: https://unu-merit.nl/publications/wppdf/2012/wp2012-025.pdf
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    References listed on IDEAS

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    Cited by:

    1. B. Senakumari Arunnima & Dharmaseelan Bijulal & R. Sudhir Kumar, 2023. "Open Innovation Intellectual Property Risk Maturity Model: An Approach to Measure Intellectual Property Risks of Software Firms Engaged in Open Innovation," Sustainability, MDPI, vol. 15(14), pages 1-19, July.
    2. Fábio Gama, 2019. "Managing collaborative ideation: the role of formal and informal appropriability mechanisms," International Entrepreneurship and Management Journal, Springer, vol. 15(1), pages 97-118, March.
    3. Crass, Dirk & Garcia Valero, Francisco & Pitton, Francesco & Rammer, Christian, 2016. "Protecting innovation through patents and trade secrets: Determinants and performance impacts for firms with a single innovation," ZEW Discussion Papers 16-061, ZEW - Leibniz Centre for European Economic Research.
    4. Arora, Ashish & Athreye, Suma & Huang, Can, 2016. "The paradox of openness revisited: Collaborative innovation and patenting by UK innovators," Research Policy, Elsevier, vol. 45(7), pages 1352-1361.
    5. Henkel, Joachim & Schöberl, Simone & Alexy, Oliver, 2014. "The emergence of openness: How and why firms adopt selective revealing in open innovation," Research Policy, Elsevier, vol. 43(5), pages 879-890.
    6. So Young Kim & Eungdo Kim, 2018. "How Intellectual Property Management Capability and Network Strategy Affect Open Technological Innovation in the Korean New Information Communications Technology Industry," Sustainability, MDPI, vol. 10(8), pages 1-17, July.
    7. Bronwyn H. Hall & Christian Helmers & Mark Rogers & Vania Sena, 2012. "The Choice between Formal and Informal Intellectual Property: A Literature Review," NBER Working Papers 17983, National Bureau of Economic Research, Inc.
    8. Crass, Dirk & Valero, Francisco Garcia & Pitton, Francesco & Rammer, Christian, 2019. "Protecting Innovation Through Patents and Trade Secrets: Evidence for Firms with a Single Innovation," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 26(1), pages 117-156.
    9. Waseem Ul Hameed & Muhammad Farhan Basheer & Jawad Iqbal & Ayesha Anwar & Hafiz Khalil Ahmad, 2018. "Determinants of Firm’s open innovation performance and the role of R & D department: an empirical evidence from Malaysian SME’s," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-20, December.
    10. Stefan, Ioana & Bengtsson, Lars, 2017. "Unravelling appropriability mechanisms and openness depth effects on firm performance across stages in the innovation process," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 252-260.

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    More about this item

    Keywords

    open innovation; contracts; intellectual property rights;
    All these keywords.

    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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