According to different studies, it has been observed that even the largest innovation active companies nowadays cannot depend on internal sourcing only but also require knowledge from the outside during innovation development. On top of doing their research, as well as development, diverse organizations have been noted to typically engage in knowledge acquisition on the technology market. In this context, in acquiring this knowledge, these firms apply aspects such as licensing, contracting out R&D, and acquisition of other companies or attraction of experienced researchers with pertinent knowledge.
Transaction costs method observes whether it will be preeminent for a company to develop its own technology or obtain it from the market. In other words, the internal as well as the external activities of innovation are treated as substitutes. Consequently, the joint occurrence of these activities of acquiring knowledge internally or externally at the organizational level remains to be suggestive of complementarity sandwiched between the activities. In other words, as the level of one activity increases, so is the marginal of the other activity (Mortara & Ford, 2012). Therefore, own internal knowledge has been observed to increase the marginal return to external strategies of acquiring knowledge, a concept that is reminiscent of the ‘absorptive capacity’ notion introduced by scholars that stresses on the significance of a preceding know-how stock for scanning, screening and absorbing external knowledge. In unison, external knowledge access can leverage internal R&D activities’ efficiency, especially after the company has exhibited a motivation of taking on external knowledge and ideas.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Implementation
- Evaluation
- Control
- Outside-in Process
- Inside-out Process
- Coupled Process
- Overall Portfolio Management
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The work aims to examine the policy of internal innovation and external acquired technologies, focusing on the dynamics between these two strategies and their impact on overall innovation success. It analyzes the implementation, evaluation, and control of these strategies within the framework of open innovation models.
- The role of internal innovation and external knowledge acquisition in achieving innovation success.
- The shift from closed innovation to open innovation models and their implications for company strategy and execution.
- The importance of aligning different improvement initiatives within a firm to ensure successful implementation and achieve strategic goals.
- The significance of absorptive capacity in effectively integrating external knowledge into internal processes.
- The challenges and opportunities associated with implementing open innovation models, including managing the flow of internal and external ideas.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter examines the growing reliance of even the largest companies on external knowledge sources for innovation development, highlighting the complementarity of internal and external innovation activities and the importance of absorptive capacity.
- Implementation: This chapter discusses the emergence of open innovation models, which emphasize the integration of both internal and external knowledge for innovation success. It also explores the complexities of strategic decisions and execution in implementing these models, considering factors like consumer behavior uncertainty, competition, and technological changes.
- Evaluation: This chapter evaluates the transition from closed innovation models to open innovation models, highlighting the challenges of controlling the flow of ideas and the need for companies to become more adaptable and open to external knowledge sources.
- Control: This chapter delves deeper into the different processes involved in open innovation models, including outside-in, inside-out, and coupled processes. It examines the specific characteristics and challenges associated with each process, including the need for effective technology transfer and collaboration with external partners.
Schlüsselwörter (Keywords)
The work focuses on key concepts such as internal innovation, external knowledge acquisition, open innovation, absorptive capacity, strategic alignment, execution, outside-in process, inside-out process, coupled process, and overall portfolio management. It explores the interplay between these concepts and their significance in achieving innovation success in a rapidly changing business environment.
- Quote paper
- Business Administrator Mutinda Jackson (Author), 2018, The Policy of Internal Innovation and External Acquired Technologies, Munich, GRIN Verlag, https://www.grin.com/document/429525
