Understanding the advantages of open innovation practices in corporate venturing in terms of real options
By Wpm Wim Vanhaverbeke, Vareska Van de Vrande. IEEE International Conference on Industrial Engineering and Engineering Management, 2008
265 citations recorded by the source corpus.
Part of the advantages of using an open innovation (compared to closed innovation) in corporate venturing can be explained by applying the real options approach. Open innovation in risk-laden activities such as corporate venturing has the following advantages: i. benefits from early involvement in new technologies or business opportunities, ii. delayed financial commitment, iii. early exits reducing the downward losses, and iv. delayed exit in case it spins off a venture. We furthermore argue that these benefits do not automatically materialize. Innovation firms have to learn new skills and routines to develop the full `real option¿-potential of open innovation practices.
Subfields: Accounting, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/b2f75ad9ed07751b4eb85816027bedcc42d9077e
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Accounting
In Strategy and Management
- Stein Østbye
- Kristin Woll
- Mikko Moilanen
- Eelko K. R. E. Huizingh
- Wpm Wim Vanhaverbeke
- Sabine Brunswicker
Citations in the corpus
- Non-R&D SMEs: external knowledge, absorptive capacity and product innovation (2014, background): “Although knowledge inflows from R&D institutions are not mediated by AC, knowledge from R&D institutions can help firms perform the very first steps of an innovation process (Broström 2010) or keep the option alive to innovate in the future (Vanhaverbeke et al. 2008).”
- Open innovation: State of the art and future perspectives (2011, background): “Vanhaverbeke et al. (2008) propose a stepwise process of real options theory to gradually improve a firm's absorptive capacity, which is an important prerequisite for open innovation.”
- Managing Distributed Innovation: Strategic Utilization of Open and User Innovation (2012, unknown): “In contrast to some other streams, it mainly focuses on the revenue-generating practices from a firm perspective (Vanhaverbeke et al., 2008; van de Vrande et al., 2009).”