Profiting from External Innovation: A Review of Research on Open Innovation

Abstract

In 2003, Chesbrough coined the term “open innovation” as a new paradigm for industrial innovation. In this paper, we review and synthesize the growing literature that follows Chesbrough by studying the commercialization of external innovations — one of the key open innovation practices.

This paper provides a comprehensive overview and process model of open innovation. We classify prior studies in open innovation according to a four-phase process model for inbound open innovation that includes obtaining, integrating and commercializing external innovation, as well as work on nonreciprocal innovation flows. Finally we identify three opportunities for future research, including greater focus on business models, examination of the later and reciprocal phases of the commercialization process, and research into the limits and moderators of open innovation.

Keywords: open innovation

JEL Classification: O31, O32, L22