Balancing between Inward and Outward Technology Transfer in Open Innovation Paradigm

Abstract

In this paper we argue that companies need to change their corporate strategies towards more open and at the same time they should be cautious about how to deal with their technology related activities. We further argue that technology transfer is risky but not involving with technology transferring is risker, at least, in long run, particularly for technological firms. Due to openness of innovation, firms are under a new dilemma for which they need different strategies than traditional ones. Firms are increasingly considering technology and knowledge as their crucial resources. They started to abandon the idea that the generation of new knowledge comes from internal research and development. Additionally, to remain competitive, managing intellectual resources is a necessity for them. Many large firms are earning a significant portion of their revenues from technology transfer but larger proportion of the firms still struggling to deal with their technologies. Open innovation concept has exposed this technology transfer issue more vividly, hence, made crucial for managers and academicians to ponder upon it.