Challenges of open innovation: the paradox of firm investment in open-source software

Joel West, Scott Gallagher · 2006 · R and D Management

Summary. Firms face three core challenges when pursuing open innovation: exploiting internal innovations, integrating external innovations, and motivating outsiders to contribute. The authors examine how software firms resolve these challenges through four strategies: pooled R&D, spinouts, selling complements, and attracting donated complements. These approaches show how companies can invest in shared intellectual property while maintaining competitive advantage, with lessons applicable across industries.

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West, J., & Gallagher, S.. (2006). Challenges of open innovation: the paradox of firm investment in open-source software. R and D Management. https://doi.org/10.1111/j.1467-9310.2006.00436.x

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  title   = {Challenges of open innovation: the paradox of firm investment in open-source software},
  author  = {Joel West and Scott Gallagher},
  journal = {R and D Management},
  year    = {2006},
  doi     = {10.1111/j.1467-9310.2006.00436.x},
  url     = {https://doi.org/10.1111/j.1467-9310.2006.00436.x}
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Details

DOI: 10.1111/j.1467-9310.2006.00436.x
Countries: United States
Regions: North America
Categories: innovation-theory, innovation-networks, general-innovation
Added: 2026-04-28