Weighing the Pros and Cons of Engaging in Open Innovation

Abstract

The advantages of open innovation projects are widely discussed in innovation management research and practice (e.g., Man & Duysters, 2005). Particularly, small and medium-sized enterprises (SMEs) are expected to gain most from open innovation collaborations due to their inherently limited capabilities (Lee et al., 2010; van de Vrande 2009). However, these enterprises also face manifold challenges in open innovation practice, leading to uncertainty and even renunciation of open innovation project participation. Thus, SMEs often deal with the decision dilemma of having to cooperate with external partners in order to improve their own innovation capacity, regardless of their ability to cope with the correlated risks. Although it is essential for SMEs to find the right balance between positive effects and possible negative consequences (i.e., the “dark sides” of open innovation, cf. Huizingh, 2011) of open innovation project participation, appropriate methods of finding this balance are still lacking. The research project “Open Darkness” was initiated with the goal of enabling SMEs to weigh the risks and benefits of open innovation participation by developing: i) a weighing and decision process framework and ii) a software tool that automatically applies this framework and allows self-assessment for SMEs. Both solutions aim to structure and support the decision process regarding potential engagement in open innovation projects. In order to tackle these targeted outcomes, an interdisciplinary consortium facilitates a multi-perspective and an integrated holistic research approach. Besides several SMEs, which function as requirement authority and implementer, the consortium consists of three German research institutions: the Chair of Economic Law (University of Paderborn), the Chair of Technology and Innovation Management (University of Aachen), and the Chair of Business Informatics (University of Potsdam).