Intellectual Property and ‘Open’ Innovation: A Synthesis of Concepts

Abstract

This chapter addresses four interrelated issues: (1) the variability in ways openness is understood across groups and disciplines; (2) the debate over intellectual property (IP) and its impact on open innovation; (3) the dearth of research connecting firm strategy and innovation systems; and (4) the relationships among legal systems and managerial strategies. The result is an integrated conceptual synthesis for addressing the relationship between IP and ‘open’ innovation. The chapter beings with a review of the relevant literature and distillation of key concepts. It then expands on the basic theory of appropriation for innovation by describing three nuanced IP-based business strategies to appropriate returns on innovation: acquisition toward commercialization, free revealing to the public domain, and open licensing for collaboration. The strategic choices that firms make are further analysed as either offensive or defensive decisions. After linking key terminology and IP management strategies, the chapter concludes with recommendations for researchers, policy-makers, lawyers, managers, economists, and others. The synthesis in this chapter will enable researchers to: (1) understand and use precise terminology; (2) revisit assumptions about appropriation; (3) neutralize marketplace framework policies; and (4) promote more collaboration.