Innovation Contests, Open Innovation, and Multiagent Problem Solving

Christian Terwiesch, Yi Xu · 2008 · Management Science

Summary. Innovation contests let firms post problems to independent solvers and reward the best solution. The paper shows that larger solver populations benefit firms through solution diversity, offsetting reduced individual effort. Performance-contingent awards further improve outcomes compared to fixed prizes. The analysis identifies which product types and cost structures gain most from contests versus internal innovation.

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Terwiesch, C., & Xu, Y.. (2008). Innovation Contests, Open Innovation, and Multiagent Problem Solving. Management Science. https://doi.org/10.1287/mnsc.1080.0884

@article{terwiesch-2008-innovation-contests-open-innovation-multiagent,
  title   = {Innovation Contests, Open Innovation, and Multiagent Problem Solving},
  author  = {Christian Terwiesch and Yi Xu},
  journal = {Management Science},
  year    = {2008},
  doi     = {10.1287/mnsc.1080.0884},
  url     = {https://doi.org/10.1287/mnsc.1080.0884}
}

TY  - JOUR
TI  - Innovation Contests, Open Innovation, and Multiagent Problem Solving
AU  - Christian Terwiesch
AU  - Yi Xu
JO  - Management Science
PY  - 2008
DO  - 10.1287/mnsc.1080.0884
UR  - https://doi.org/10.1287/mnsc.1080.0884
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Details

DOI: 10.1287/mnsc.1080.0884
Countries: United States
Regions: North America
Categories: innovation-theory, entrepreneurship, general-innovation
Added: 2026-04-28