TY - JOUR
T1 - Open versus closed innovation
T2 - A model of discovery and divergence
AU - Almirall, Esteve
AU - Casadesus-Masanell, Ramon
PY - 2010/1/1
Y1 - 2010/1/1
N2 - When is open innovation superior to closed innovation? Through a formal simulation model we show that an open approach to innovation allows the firm to discover combinations of product features that would be hard to envision under integration. However, when partners have divergent goals, open innovation restricts the firm's ability to establish the product's technological trajectory. The resolution of the trade-off between benefits of discovery and costs of divergence determines the best approach to innovation.
AB - When is open innovation superior to closed innovation? Through a formal simulation model we show that an open approach to innovation allows the firm to discover combinations of product features that would be hard to envision under integration. However, when partners have divergent goals, open innovation restricts the firm's ability to establish the product's technological trajectory. The resolution of the trade-off between benefits of discovery and costs of divergence determines the best approach to innovation.
UR - http://www.scopus.com/inward/record.url?scp=71949089998&partnerID=8YFLogxK
U2 - 10.5465/AMR.2010.45577790
DO - 10.5465/AMR.2010.45577790
M3 - Article
AN - SCOPUS:71949089998
SN - 0363-7425
VL - 35
SP - 27
EP - 47
JO - Academy of Management review
JF - Academy of Management review
IS - 1
ER -