← All articles

Photo · Gordon More

Externalities of openness in innovation

Stephen Roper, Priit Vahter, James H. Love · 2013 · Research Policy

Summary. Open innovation practices generate positive externalities that benefit firms beyond their direct participants, improving knowledge diffusion and innovation performance across industries. Using Irish manufacturing data from 1994–2008, the authors find that these externalities significantly boost firms' innovation outputs through increased knowledge spread and competition, not through adoption of open practices alone. The gap between private and social returns to openness suggests firms adopt it suboptimally, justifying public policies that encourage open innovation.

Read the original

Cite this article

Roper, S., Vahter, P., & Love, J. H.. (2013). Externalities of openness in innovation. Research Policy. https://doi.org/10.1016/j.respol.2013.05.006

Details

DOI
10.1016/j.respol.2013.05.006
Countries
Ireland
Regions
Europe
Categories
innovation-theory, policy, general-innovation
Added
2026-04-28