Wpm Wim Vanhaverbeke

Understanding the Advantages of Open Innovation Practices in Corporate Venturing in Terms of Real Options

Part of the advantages of using open innovation (compared to closed innovation) in corporate venturing can be explained by applying the real options approach. Open innovation in risk-laden activities such as corporate venturing has the following advantages: (i) benefits from early involvement in new technologies or business opportunities; (ii) delayed financial commitment; (iii) early exits reducing the downward losses; and (iv) delayed exit in case it spins off a venture. We furthermore argue that these benefits do not automatically materialize. Innovative firms have to learn new skills and routines to develop the full ‘real option’ potential of open innovation practices.

Learning mechanisms and differential performance in alliance portfolios

This study assesses the differential performance effects of learning mechanisms in alliance portfolios. Investigating two distinct types of learning mechanisms (i.e. integrating and institutionalizing mechanisms), the results show that different learning mechanisms have different performance effects at distinct levels of alliance experience.The results are based on a detailed survey among alliance managers and vice-presidents of 192 firms reporting on over 3400 alliances formed over the period 1997—2001.The main lesson from this study is that firms can deliberately develop their alliance capabilities by using integrating mechanisms to transfer prior experiences.

Technology In-Sourcing and the Creation of Pioneering Technologies

In this paper we analyze the effect of different external technology sourcing modes on the creation of radical innovation in companies. Moreover, since prior research has indicated that exploration consists of looking beyond both organizational and technological boundaries, we also include the role of technological distance between the partnering firms as well as the role of technological newness. In particular, we examine how they affect the relationship between external technology sourcing and the creation of pioneering technologies (technologies that do not build on any existing technologies), which are used as a proxy for radical innovations. The results indicate that strategic alliances and corporate venture capital investments have a positive effect on the generation of pioneering technologies, whereas the effect of M&As is found to be negative. Additionally, the impact of these governance modes on the creation of pioneering technology is indeed affected by the spanning of technological boundaries.

Additivity and Complementarity in External Technology Sourcing: The Added Value of Corporate Venture Capital Investments

Innovating firms often invest in a number of different technology projects, in different stages of development, using a wide range of distinct technology sourcing modes, such as strategic alliances, joint ventures, and mergers and acquisitions. Recently, firms have also gained an increasing awareness of the potential benefits of corporate venture capital investments. This paper investigates the particular role of corporate venture capital investments in the technology sourcing portfolio of firms. More specifically, we focus on the extent to which corporate venture capital investments are additive or complementary to other modes of technology sourcing when explaining the innovative performance of firms. The results indicate that corporate venture capital investments are particularly beneficial for the innovative performance of firms when they are used in combination with other technology sourcing modes.

Technological performance and alliances over the industry life cycle: : Evidence from the ASIC industry

Technology development in firms is frequently based on a combination of internal and external technological learning. Consequently, firms need to develop both technological capital (a patent portfolio) and alliance capital (a portfolio of technology alliances). This paper examines the relationship between technological capital, alliance capital and their joint impact on the technological performance of firms, with an application to the ASIC industry. We find that positive marginal returns to alliance capital are decreasing at higher levels of alliance capital. Technological capital and alliance capital can either augment or reduce each others’ influence on innovation performance depending on the stage of the technology life cycle in the industry. A reinforcing relationship related to absorptive capacity requirements and technological uncertainty is present in early stages, while technology leakage and market competition effects render the combination of high levels of technological and alliance capital counterproductive in later stages of the technology life cycle.

Business Models in Open Innovation and Commercialization – a dynamic approach

This afternoon I will talk about business models because in open innovation they play a crucial role. If you have read the books of Henry Chesbrough or other authors on open innovation, you know that business models are important in explaining the phenomenon of open innovation. Moreover, they are not only important for open innovation but also for open commercialization processes, that is the network of partners you need to launch the product once the innovation is completed.