An exploratory study of the economic effect of open innovation

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 limi...

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