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Subject An exploratory study of the economic effect of open innovation
Writer Date 2014/11/18 Hit 17094

Purpose – The purpose of this paper is to discover the economic effects of open innovation
investigated the following research questions: do economic effects of open innovation – a certain
economic phenomenon or economic paradigm that surpasses the level of the management strategies of
individual enterprises – exist? If so, what are the economic effects?
Design/methodology/approach – The authors analyse the change of classical economic
characteristics, such as diminishing marginal products, economy of scale, and X-inefficiency, which
are selected by literature review to find out the effects of open innovation. The authors select long-tailed
phenomena and App Store phenomena, which are a direct result of open innovation. From these, the
authors find out the effects of open innovation.
Findings – Through exploratory-level studies, the economic characteristics of open innovation have
been identified: gradual increases of marginal products, the economy of diversity, and X-efficiency
improvement.
Research limitations/implications – These three economic characteristics of open innovation
have been verified through secondary analysis methods based on the long-tailed phenomenon and
App Store phenomenon. Open innovation triggers new economic effects. Thus, the authors should
create new strategies and policies to treat open innovation that are based on additional deep research.
Practical implications – This paper introduces new ideas about open innovation in economics.
Social implications – According to the findings, open innovation will give the authors new ways to
develop continuously in a knowledge-based economy.
Originality/value – For the first time, the authors understand the economic value of open
innovation and its implications.
Keywords Open innovation, Economy of diversity, Gradual increase of marginal products,
Long-tailed economy, X-efficiency
Paper type Conceptual paper
Introduction
   ÷ File name :  the effect of open innovation.pdf



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