Can IP Foster Open Innovation in Hi-technology Firms? Dynamics of the Impact of IP on Alliance Intensity with Different Actors in the Open Innovation System

This PowerPoint presentation was presented at the INNO-GRIPS Early Career Researcher Workshop on Open Innovation and IPR, held at the University of Manchester 26-27 January 2009. Empirical evidence from a sample of technology-intensive firms in the five hi-technology sectors in Scotland provides deep insights into the dynamics of the link between IP and open innovation (OI). Hi-technology firms' operating environment is characterised by escalating costs and risks, complexity and variety of products, and global competition. Hence, they increasingly embrace OI in their business model. Firms pursue various vertical and horizontal alliances to accumulate internal innovation capability, to develop innovative products, and to commercialise their innovation. At the same time efficient IP mechanisms are vital to capture value. IP is seen to enable open innovation in firms. The dependent variable OI is captured here by firm’s alliance intensity with suppliers, customers, competitors, research, government, trade, and finance collaborators. The independent variables selected are patent activity, new product count, commercial returns to innovation, R&D, size, age, internal and market spillovers. This study fills in a gap in the empirical research in terms of combining these variables to explain OI behaviour and to identify the most important factors determining openness. Results reveal that patent activity has a negative affect on customer and supplier alliances, but a significant positive affect on the finance alliance. Important implications for policy and researchers are discussed.

From Conference Presentation (NNO-GRIPS Early Career Researcher Workshop on Open Innovation and IPR), published on 03-02-2009
Original document: 2009_Ujjual_CanIpFosterOI.pdf - PDF document - 124 Kb


  • Ujjual, Vandana - University of Sussex

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  • Innovation research

Covered areas

  • United Kingdom


  • Innovation systems
  • Intellectual property
  • Networks and clusters
  • SMEs - Gazelle Firms
  • System level characteristics
  • Technology

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