Title: Innovating within the system: the simulation model of external influences on open innovation process

Authors: Irina Savitskaya; Samuli Kortelainen

Addresses: Faculty of Technology Management, LUT Kouvola, Lappeenranta University of Technology, Prikaatintie 9, FI-45100, Kouvola, Finland. ' Faculty of Technology Management, Lappeenranta University of Technology, Skinnarilankatu 34, FI-53850, Lappeenranta, Finland

Abstract: Innovation research has been widely concerned with defining the process of new product development and factors influencing innovativeness. On the other hand, the open innovation research also started to look at what are the environments where openness brings higher benefits. In this paper, we introduce the system dynamics simulation model to analyse how such external factors as markets for technology, IPR and appropriability regime as well as speed of market reactions and user needs changes are influencing innovative output of the firms inside one industry. The results show that, e.g., average speed of market and rather high IPR protection level increase amount of technologies introduced to the market. Additionally, the market speed change has a positive impact on new products introduction to the market; however after increasing to the certain point, the market speed becomes too high for product development to cope with, demonstrating the need for balance.

Keywords: external environments; intellectual property rights; organisational culture; new product development; NPD; system dynamics; simulation models; external influences; innovativeness; openness; external factors; technology markets; appropriability; market reactions; user needs; innovative output; intellectual property protection; market speed; R&D; research and development; transitions; innovation systems; open innovation.

DOI: 10.1504/IJTIS.2012.049418

International Journal of Transitions and Innovation Systems, 2012 Vol.2 No.2, pp.135 - 150

Published online: 11 Oct 2014 *

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