Intellectual property protection need as a driver for open innovation: Empirical evidence from Vietnam

Thi Phuong Thao Nguyen, Fang Huang and Xiaowen Tian

Technovation, 2023, vol. 123, issue C

Abstract: In previous research, open innovation (OI) has been considered to be driven by the need for new or advanced technologies unavailable within a firm, and to be a process with the risk of leaking intellectual property to competitors. Drawing on the resource-based view, this paper contends that OI increases causal ambiguity and social complexity of the innovation processes, creates imitation barriers to competitors and provides “informal” protection of intellectual property. This informal approach is particularly attractive to firms in developing economies where the formal institutional protection for intellectual property is weak. Thus, contrary to conventional wisdom, the need for intellectual property protection (IPP) pushes firms to undertake OI. We test this argument against firm-level data from Vietnam and find supporting evidence: the need for IPP is a robust driver for OI regardless of whether the firm is located in a more competitive or less competitive context. Furthermore, the need for IPP is a stronger driver for small firms than for larger firms.

Keywords: Open innovation drivers; Intellectual property protection need; Informal intellectual property protection; Resource-based view; Vietnam; Developing economies (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:techno:v:123:y:2023:i:c:s0166497223000251

DOI: 10.1016/j.technovation.2023.102714

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