The limits of open innovation:openness and (quasi-)markets in the organization of innovation

Recent studies have stressed the importance of ‘open innovation’ as a means of enhancing innovation performance. The essence of the open innovation model is to take advantage of external as well as internal knowledge sources in developing and commercialising innovation, so avoiding an excessively narrow internal focus in a key area of corporate activity. Although the external aspect of open innovation is often stressed, another key aspect involves maximising the flow of ideas and knowledge from different sources within the firm, for example through knowledge sharing via the use of cross-functional teams. A fully open innovation approach would therefore combine both aspects i.e. cross-functional teams with boundary-spanning knowledge linkages. This suggests that there should be complementarities between the use cross-functional teams with boundary-spanning knowledge linkages i.e. the returns to implementing open innovation in one innovation activity is should be greater if open innovation is already in place in another innovation activity. However, our findings – based on a large sample of UK and German manufacturing plants – do not support this view. Our results suggest that in practice the benefits envisaged in the open innovation model are not generally achievable by the majority of plants, and that instead the adoption of open innovation across the whole innovation process is likely to reduce innovation outputs. Our results provide some guidance on the type of activities where the adoption of a market-based governance structure such as open innovation may be most valuable. This is likely to be in innovation activities where search is deterministic, activities are separable, and where the required level of knowledge sharing is correspondingly moderate – in other words those activities which are more routinized. For this type of activity market-based governance mechanisms (i.e. open innovation) may well be more efficient than hierarchical governance structures. For other innovation activities where outcomes are more uncertain and unpredictable and the risks of knowledge exchange hazards are greater, quasi-market based governance structures such as open innovation are likely to be subject to rapidly diminishing returns in terms of innovation outputs.

A survey of urban open space using colour infra-red aerial photographs

There has been a dramatic change in the U.K. government policy regarding the establishment of new towns. The emphasis is now on the redevelopment of existing cities rather than on building new ones. This has created an urgent need to carry out detailed surveys and inventories of many aspects of urban land use in metropolitan areas: this study concentrates on just one aspect - urban open space. In the first stage a comparison was made between 1:10,000 scale black and white and 1:10,000 scale colour infra-red aerial photographs, to compare the type and amount of open space information which could be obtained from these two sources. The advantages of using colour infra-red photography were clearly demonstrated in this comparison. The second stage was the use of colour infra-red photography as the sole source of data to survey and map the urban open space of a sample area in Merseyside Metropolitan County. This sample area comprised eleven 1/4km2 squares, on each of which a 20m x 20m grid cell was placed to record, directly from the photography, 625 sets of data. Each set of data recorded the type and amount of open space, its surface cover, maintenance status and management. The data recorded were fed into a computer and a suite of programs was developed to provide output in both computer map and statistical form, for each of the eleven -1/4km2 -sample areas. The third stage involved a comparison of open space data with socio-economic status. Merseyside County Planning Authority had previously conducted a socio-economic survey of the county, and this information was used to identify ' the socio-economic status of the population in the eleven ilkm2 areas of this project. This comparison revealed many interesting and useful relationships between the provision of urban open space and socio-economic status.

Dynamic learning as entrepreneurial action in the context of open innovation:an instrumental case from a communities-of-practice perspective

Recent scholarly discussion on open innovation put forward the notion that an organisation's ability to internalise external knowledge and learn from various sources in undertaking new product development is crucial to its competitive performance. Nevertheless, little attention has been paid to how growth-oriented small firms identify and exploit entrepreneurial opportunities (i.e. take entrepreneurial action) related to such development, in an open innovation context, from a social learning perspective. This chapter, based on an instrumental case-firm, demonstrates analytically how learning as entrepreneurial action takes place, drawing on situated learning theory. It is argued that such learning is dynamic in nature and is founded on specific organising principles that foster both inter- and intracommunal learning. © 2012, IGI Global.