Open innovation: a new classification and its impact on firm performance in innovative SMEs

Main Article Content

Joon Mo Ahn
Tim Minshall
Letizia Mortara

Abstract

This paper attempts to deepen understanding of the relationship between open innovation (OI) and firm performance in small and medium-sized enterprises (SMEs). Based on survey data from 306 Korean innovative SMEs, the results of this study show that: (1) broad and intensive engagement in OI and cooperation with external partners are positively associated with firm performance; (2) technology and market-oriented OI modes (Joint R&D, user involvement and open sourcing), involving relatively low level of changes, can positively contribute to performance enhancement; and (3) innovative SMEs benefit from working with non-competing partners, such as customers, consultancy/intermediaries and public research institutes. This work has broadened the evidence available on SMEs’ OI adoption and has proposed a new way to study OI adoption and implementation.

Article Details

Author Biography

Joon Mo Ahn, The University of Cambridge

Deputy Director, Ministry of Science, ICT and Future Planning, South Korea