Title: Open innovation and closed innovation: a simulation study on market conditions and innovation strategies

Authors: Georg Nawroth; Alexander Brem; Christian Rymarczyk

Addresses: Institute for Humand factors and Technology Management, University of Stuttgart, IAT – Nobelstraße 12, 70569 Stuttgart, Germany; Fraunhofer Institute for Industrial Engineering, IAO – Nobelstraße 12, 70569 Stuttgart, Germany ' Institute of Entrepreneurship and Innovation Science, University of Stuttgart, Pfaffenwaldring 19, 70569 Stuttgart-Vaihingen, Germany; The Mads Clausen Institute, University of Southern Denmark, Alsion 2, 6400 Sønderborg, Denmark ' University of Hagen, Universitätsbibliothek der FernUniversität, 58084 Hagen, Germany

Abstract: The role of open or closed innovation (CI) strategies regarding the innovation or rather entrepreneurial success is not solved yet. Therefore, this simulation study examines by means of a multi-agent system the effects of open innovation (OI) on the entrepreneurial success of SMEs under differently parameterised market conditions. The simulation study shows that different market conditions and the characteristics of human resource allocation of a company have a relevant influence on the success of an innovation strategy. The experiments show that OI can mainly take advantage of more human resources, whereas CI lags behind OI in the financial aspect but exceeds OI in terms of market share. Furthermore, the simulation revealed that concrete company situations and market conditions have different effects on the examined innovation strategies. These findings help to stimulate further, even empirical, research efforts.

Keywords: open innovation; closed innovation; market conditions; simulation; innovation strategy.

DOI: 10.1504/IJTM.2023.128796

International Journal of Technology Management, 2023 Vol.92 No.1/2, pp.63 - 94

Accepted: 21 Jan 2022
Published online: 06 Feb 2023 *

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