Firm’s openness and innovation radicalness within R&D networks: Reconciling the openness paradox through the network pluralism view

Abstract

Strategic openness in R&D networks is crucial for high-tech enterprises aiming to enhance innovation radicalness. Firms often struggle to understand the impact of openness in different technological fields and how to navigate the associated tension between sharing and protecting knowledge. Drawing upon the network pluralism approach and knowledge-based view, we separate a firm’s R&D network into three types based on technological fields: core technological R&D network (CN), related and distant non-core technological R&D network (related NN and distant NN). We argue that a focal firm’s openness within these networks affects innovation radicalness in distinct ways. Fixed-effects regression analysis of patent data from the new energy vehicle industry (2001–2021) demonstrates that openness in CN and related NN positively influence the focal firm’s innovation radicalness, while openness in distant NN negatively affects outcomes. Furthermore, the openness in related NN and distant NN plays distinct moderating roles in the relationship between openness in CN on innovation radicalness. This study reveals that the impact of openness and the associated tension depend on the technological fields, and highlights that the interplay between parallel networks can help mitigate this tension. In sum, our research contributes to the current debate on the openness paradox in R&D networks, providing firms with a new perspective to better manage the tension between sharing and protecting knowledge in practice.