Innovation paradigms: contractual models for research and technology organisations

Abstract

Co-development partnerships are increasingly being used to enhance innovation effectiveness and leverage complementary capabilities of partner organisations. A perceptible transition from closed innovation paradigm to open innovation paradigm is also observed. This trend is consistent with the thinking that capabilities necessary for creating innovations are often not completely available within a single organisation. Furthermore, the intellectual property (IP) regime is getting stronger by the day. These changes in the macro-environment coupled with the need to access complementary capabilities have spurred the need for novel contractual models, which facilitate transactions involving IP and other assets between different organisations. In this backdrop, the authors have attempted to analyse the trend of contractual models that have either already been adopted or are in the process of adoption by an Indian research and technology organisation (RTO) involved in the development, demonstration and transfer of materials-based technologies. This paper specifically addresses issues associated with partnerships that attempt to embrace open innovation paradigm in the face of progressively strengthening IP regimes, and their implications on contractual models suited to an RTO, with illustrative examples.