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Leveraging External Sources of Innovation: A Review of Research on Open Innovation

Journal of Product Innovation Management, 31, 4 (July 2014): 814-831, doi: 10.1111/jpim.12125

52 Pages Posted: 2 Jan 2013 Last revised: 29 Jul 2014

Joel West

KGI - Keck Graduate Institute

Marcel Bogers

University of Copenhagen - Department of Food and Resource Economics (IFRO)

Multiple version iconThere are 2 versions of this paper

Date Written: January 2, 2013

Abstract

This article reviews research on open innovation that considers how and why firms commercialize external sources of innovations. It examines both the “outside-in” and “coupled” modes of Enkel et al. (2009). From an analysis of prior research on how firms leverage external sources of innovation, it suggests a four-phase model in which a linear process — (1) obtaining, (2) integrating and (3) commercializing external innovations — is combined with (4) interaction between the firm and its collaborators. This model is used to classify papers taken from the top 25 innovation journals identified by Linton and Thongpapan (2004), complemented by highly cited work beyond those journals. A review of 291 open innovation-related publications from these sources shows that the majority of these articles indeed address elements of this inbound open innovation process model. Specifically, it finds that researchers have front-loaded their examination of the leveraging process, with an emphasis on obtaining innovations from external sources. However, there is a relative dearth of research related to integrating and commercializing these innovations.

Research on obtaining innovations includes searching, enabling, filtering, and acquiring — each category with its own specific set of mechanisms and conditions. Integrating innovations has been mostly studied from an absorptive capacity perspective, with less attention given to the impact of competencies and culture (including not-invented-here). Commercializing innovations puts the most emphasis on how external innovations create value rather than how firms capture value from those innovations. Finally, the interaction phase considers both feedback for the linear process and reciprocal innovation processes such as co-creation, network collaboration and community innovation.

This review and synthesis suggests several gaps in prior research. One is a tendency to ignore the importance of business models, despite their central role in distinguishing open innovation from earlier research on inter-organizational collaboration in innovation. Another gap is a tendency in open innovation to use “innovation” in a way inconsistent with earlier definitions in innovation management. The article concludes with recommendations for future research that include examining the end-to-end innovation commercialization process, and studying the moderators and limits of leveraging external sources of innovation.

Keywords: open innovation, external innovation, outsourcing, technology acquisition, business models

JEL Classification: O31, O32

Suggested Citation

West, Joel and Bogers, Marcel, Leveraging External Sources of Innovation: A Review of Research on Open Innovation (January 2, 2013). Journal of Product Innovation Management, 31, 4 (July 2014): 814-831, doi: 10.1111/jpim.12125. Available at SSRN: https://ssrn.com/abstract=2195675

Joel West (Contact Author)

KGI - Keck Graduate Institute ( email )

535 Watson Drive
Claremont, CA 91711
United States
909-293-8550 (Phone)

HOME PAGE: http://www.joelwest.org/KGI

Marcel Bogers

University of Copenhagen - Department of Food and Resource Economics (IFRO) ( email )

Unit for Innovation, Entrepreneurship & Management
Rolighedsvej 25
Copenhagen, 1958
Denmark

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