Du et al. (2014) "Managing open innovation projects with science-based and market-based partners

19 important questions on Du et al. (2014) "Managing open innovation projects with science-based and market-based partners

What does this paper examine?

The relationship between (outside-in) open innovation and the financial performance of R&D projects

Which two types of open innovation partnerships are introduced?

  • Market-based
  • Science-based

Where is open innovation advocated to?

To lead to a number of benefits such as
  • better adaptation to dynamic market needs
  • shared resources and risks among partners
  • higher commercial returns
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Existing research on the openness-performance relationship has generated mixed results:

Some authors found a positive relationship; while others found no relation, or even negative relationships. A possible reason for this is that most studies are conducted at the firm level, comparing the performance of firms that differ in terms of their overall openness to external partners.

What is project management?

Characterized by the process and management tools to plan, monitor, and control the execution of R&D projects, lies at the heart of the implementing corporate innovation strategies

How can R&D proejct be considered?

As temporary entities that conduct a series of complex and interrelated activities with predefined goals

What is a possible way to infuse R&D projects with new knowledge and to improve their performance?

To open up and establish R&D partnerships

Where do R&D partnerships help with?

  • They help organizations to access and leverage external complementary resources
  • Reduce innovation costs and risks
  • Adapt to dynamic environments
  • Generate higher revenues  

What about R&D projects and science-based partnerships?

Scientific research conducted at universities and knowledge institutes is an important input for industrial innovation. By collaborating with science-based partners, R&D project teams gain access not only to tacit scientific knowledge, but also to (unpublished) codified knowledge, enabling them to quickly build on the latest research findings. Scientific knowledge functions as a map for applied research by equipping R&D project teams with a better understanding of the technological space in which they search for solutions for the technical problems they are addressing.

Where do market-based partnerships consist of?

Of players with a close link to markets, such as suppliers and customers.

In which different ways are relationships with market players labelled?

  • Market orientation
  • Customer (or supplier) involvement
  • Customer (or supplier) interaction
  • Customer empowerment
  • Collective customer commitment
  • Marketing-R&D interfaces

What about R&D projects and market-based partnerships?

In addition to traditional market partners such as customers and suppliers, recent studies on open innovation also proposed that projects can benefit from sourcing market information from broader channels, such as communities and communities of practice.

What is project managment?

The process that is followed by companies to plan, monitor, and control the execution of R&D projects, via the adoption of management tools and techniques

What about R&D project management

Formal management approaches play a central role in the process management literature. Two elements are of particular importance in this literature: (1) adhering to documented systems and procedures, and eliminating variations in processes and outputs; and (2) standardization and generalizability across projects.

In which ways can R&D projects benefit from open innovation partnerships?

By providing access to the resources of R&D partners, open innovation partnerships may increase the likelihood that projects survive the product development process and result in marketable outcomes, thus lowering the chance of project failure, and may help project market launch

In which way do market-based partnerships ensure that market requirements are taken into account and that the innovations under development create value for customers?

By providing the project team with the latest market insights

Where might early access to (new) scientific knowledge provide the R&D project team advantage with?

With a first mover advantage in knowledge that can result in patentable innovations first launched on the market and create a (temporary) uncontested market space

What do the authors assume about R&D project with market-based partnerships (suppliers and customers) to benefit mostly from?

From a formalized project management approach - characterized by regular monitoring and adherence to a strict upfront planning

What do the authors assume about R&D project with science-based partnerships to benefit mostly from?

A less formal management approach

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