Innovation governance for value capture : the problem and a proposed simple model-based solution

Panagopoulos, Andreas P. and Pitelis, Christos (2009) Innovation governance for value capture : the problem and a proposed simple model-based solution. International Journal of Strategic Change Management, 1 (3). pp. 171-185. ISSN 1740-2859

Abstract

We aim to model the 'optimal' choice on internal vs. external innovation for value capture of different-sized firms, in the context of multilevel bargaining. We find that size differentials are a major determinant for the choice in hand. We derive implications for 'closed' vs. 'open' innovation approaches, and we discuss managerial practice, limitations and possible extensions.