The Innovation Value Chain of Outbound Open Innovation

The Innovation Value Chain of Outbound Open Innovation
Yan Ailing1, Jiang Hong2 School of Business Administration, Zhejiang Gongshang University, Hangzhou, China. E-mail: [e-mail]. 2 Institute of Policy and Management, Chinese Academy of Science, Beijing, China.
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Abstract Open innovation is the focus of academic attention. As one type of open innovation, outbound open innovation is central to the survival and growth of firms, and ultimately to the health of the economies of which they are part especially in the era of knowledge economy. This paper demonstrates the use of a conceptual framework and modeling tool, the innovation value chain (IVC), through the construction of an innovation value chain of outbound open innovation framework, and reveals the operation mechanism of desorptive capacity, and provides a theoretical basis for implementation of the outbound open innovation. Keywords: Outbound Open Innovation; Innovation Value Chain; 1.Introduction The pressures of globalization have forced firms around the world to change their innovative ways. For years, firms have relied on the closed innovation model to be competitive and bring new product and services to the market (Chesbrough, 2006). Chesbrough and Crowther (2006) define two types of open innovation companies may engage in: inbound open innovation and outbound open innovation. In the case of outbound open innovation, companies do not only rely on internal paths to market, but also look for external organisations that are better suited to commercialise a given technology. In this paper, we focus on outbound open innovation. 2.Conceptual foundations Traditionally, most industrial firms focused on internally developing new technologies and applying them in their own products(March, 1991; Calantone and Stanko, 2007). However, research on open innovation highlights that not all good ideas come from inside the organization Desorptive Capacity

(Chesbrough,

2003;

Chesbrough&Crowther,

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