Accueil > Forum > No. 74 - Open Innovation

No. 74 - Open Innovation

Communications & Strategies - 30/06/2009 No. 74 - Open Innovation

2nd Quarter 2009

The state of deep crisis in which the global economy finds itself makes it all the more necessary to take stock of what has changed and what will appear as radically new once the crisis is over. This is why it struck us as particularly relevant to shed some light on the matter with a special dossier comprised of works that address the topics of Open innovation and Open platform strategies.


Référence Langage Support Nb de page Prix  
CS74 ukPDF 178 order
CS74 ukpaper 178 250 Euros
50 euros excl. VAT
order
Dossier

Open Innovation

Edited by Edmond BARANES, Denis LESCOP, Gary MADDEN & XU Yan


Introduction
Edmond BARANES, Denis LESCOP, Gary MADDEN & XU Yan

Six Challenges in Platform Licensing and Open Innovation
Geoffrey PARKER & Marshall VAN ALSTYNE

Open Innovation within Business Ecosystems: A Tale from Amazon.com
Thierry ISCKIA & Denis LESCOP

Competition, Innovation and Intellectual Property Rights in Software Markets
Michiel BIJLSMA, Paul W.J. DE BIJL & Viktória KOCSIS

Living Labs as Tools for Open Innovation
Niklas Z. KVISELIUS, Per ANDERSSON, Håkan OZAN & Mats EDENIUS

Competing Platforms and Third Party Application Developers
Joacim TÅG

Interview with
John Paul SHEN
, Palo Alto Nokia Research Center, USA

Other paper

Is Telecommunications Productivity Characterized by Steady State Conditions?
Some Empirical Evidence for 13 OECD Countries
Claudia CURI & Paolo MANCUSO

Features

Firms and Markets
• Which Network to Deliver HDTV in Europe?
  Jacques BAJON

Technical Innovations
• RFID and Internet of Things
  Vincent BONNEAU

Book Review
• Sumru ALTUG & Pamela LABADIE, Asset Pricing for Dynamic Economies
  By James ALLEMAN
• Per ANDERSSON, Ulf ESSLER & Bertil THORNGREN, Beyond Mobility
  By Michel GENSOLLEN
Geoffrey PARKER & Marshall VAN ALSTYNE
Six Challenges in Platform Licensing and Open Innovation
Key words: licensing, open source, free software, dual licensing, platform, intellectual property.

This article describes six common challenges of design, incentives, and governance that arise in establishing platform businesses. It also proposes solutions. It considers, for example, how to open a platform to decentralized innovation yet still earn a return; how to incorporate best-of-breed innovations from different sources while avoiding problems of multi-party hold-up; and how to encourage sources of good ideas to contribute those ideas despite the risk of losing them to owners of indispensible complements. We express these issues and solutions as a reduced set of tradeoffs useful for managing information and technology property.

 
Thierry ISCKIA & Denis LESCOP
Open Innovation within Business Ecosystems: A Tale from Amazon.com
Key words: open innovation, business ecosystem, platform, web service, business models, interoperability, value.

Open innovation refers to the ability of firms to open themselves up to external networks and relationships in order to gain the full potential of their investments in innovation. The development of ICTs has opened up new markets and ways of innovating. Today, platforms and Web services are supportive instruments of relations between firms. This paper analyzes how Amazon managed openness thanks to ICT infrastructure. In this paper, we address the challenge of managing open innovation within business ecosystems, especially those abetted by a new generation of technologies called Web services. We will draw lessons from Amazon.com to understand how this keystone organization is becoming nimble at open innovation, leveraging the power of its platform thanks to its Web services package. The case study shows that by using Web services to enhance collaboration in business ecosystems, some companies could support open innovation and expand the value of the goods and services they deliver to customers. The paper concludes with a suggested research agenda dealing with the significant implications for both strategy and policy.


Michiel BIJLSMA, Paul W.J. DE BIJL & Viktória KOCSIS
Competition, Innovation and Intellectual Property Rights in Software Markets
Key words: software markets, intellectual property rights, open source software, public policy.

Abstract: This paper analyzes when it may be desirable for the government to stimulate open source software as a response to market failures in software markets. Our most important finding is that directly stimulating open source software, e.g. by acting as a lead customer, can improve dynamic efficiency if (i) there is a serious customer lock-in problem, while (ii) to develop the software, there is no need to purchase specific, complementary inputs at a substantial cost, and (iii) follow-on innovations are socially valuable but there are impediments to contractual agreements between developers that aim at realizing such innovations.


Niklas Z. KVISELIUS, Per ANDERSSON, Hakan OZAN & Mats EDENIUS
Living Labs as Tools for Open Innovation
Key words: Living Labs, Open innovation, Electronic Collaboration Tools.

This paper presents a Living Lab in Stockholm as a focal point for discussing how the Living Lab concept can be extended and used for engaging in multi-organizational open innovation. Although Living Labs have been found to have potential for driving innovation through collaboration, more research is necessary to find tangible ways of organizing this kind of collaboration. The paper is explorative and empirically induced from an ongoing development and practical implementation of a Living Lab at Stockholm-Arlanda Airport - Sweden's largest airport situated outside Stockholm. This Airport Living Lab involves a number of large industrial and academic stakeholders aiming at ensuring multi-organizational innovation delivery. Of special interest is how the Living Lab concept should evolve to continue creating conditions for user-oriented innovations through multi-organizational collaboration which would not necessarily take place otherwise. Congruent with the explorative aim of the paper it ends up in a discussion about five propositions that should be on the agenda of research and implementation for Living Lab founders in the coming years.


Joacim TAG
Competing Platforms and Third Party Application Developers
Key words: platforms; software; two-sided markets.

Technology firms often decide between being open or closed to third party application development. Building on a two-sided market model with competing platforms, I show that firms might prefer to restrict third party application development despite the fact that allowing it is free and increases the value of the product to consumers. The reason is that restricting third party application development removes network effects and thereby relaxes competition between platforms. From a social welfare perspective, firms sometimes restrict third party application development even though total welfare would be higher if development was possible.


Claudia CURI & Paolo MANCUSO
Is Telecommunications Productivity Characterized by Steady State Conditions? Some Empirical Evidence for 13 OECD Countries
Key words: Total Factor Productivity (TFP), Data Envelopment Analysis (DEA), conditional b-convergence; Fixed Effects Model.

This paper studies the convergence process, or lack thereof, of Total Factor Productivity (TFP) for a panel of 13 OECD countries over the period 1979-2007, adding breadth and depth to the convergence debate in the telecommunications industry. TFP growth is examined through the Malmquist Index and decomposed in its main determinates. Absolute and conditional convergences are estimated. Fixed-effects estimates across countries convert the cross-section test of absolute convergence into a pooled test of conditional convergence. Our findings show a growth in TFP, mainly driven by technological process. It is boosted by an increase in production possibilities and lack of bias in input utilization. Inefficiency in scale is found. Convergence tests do not suggest support in favor of absolute convergence but do exhibit evidence of conditional convergence.

James ALLEMAN is Professor Emeritus in the College of Engineering and Applied Science, University of Colorado, Boulder, where he taught economics and finance in the Interdisciplinary Telecommunications Program. He is currently a Senior Fellow and Director of Research at Columbia Institute of Tele-Information (CITI), Columbia Business School, Columbia University. Dr. Alleman has also served as the Director of the International Center for Telecommunications Management at the University of Nebraska at Omaha, Director of Policy Research for GTE, and an economist for the International Telecommunication Union.
http://www.Colorado.EDU/engineering/alleman/


Per ANDERSSON
is Professor at the Centre for Information and Communication Research (CIC), Stockholm School of Economics. Since 1993 he has participated in several research projects related to mobile communications, which have resulted in published articles in journals, conference proceedings, and books. In 1996 the focus of these projects changed to user organizations, particularly where related to the term "mobility" (including "mobile organizations"). A recently initiated project involves examining how firms and other organizations co-produce and create values from new mobile technologies and applications. His research projects involve analyzing processes of value creation in this emerging market, focusing on co-production processes in the context of mobility offerings provided by emerging constellations of firms. per.andersson@hhs.se



Jacques BAJON is Senior consultant (Television/New media) at IDATE. His assignments primarily involve strategic and sector-specific examination of the TV and Internet industries, in addition to devoting his efforts to examining new TV services and to monitoring leading media groups' strategies. Jacques's previous experience includes freelance writer for the Eurostaf group, carrying out market research and analysis of media and telecommunications industry companies, in addition to gaining experience in market analysis working for Ericsson. He holds a post-graduate research degree (DEA) in International Economics (Université Paris X Nanterre).




Edmond BARANES is Professor of Economic Sciences at the University of Montpellier He holds a Ph.D. in Economic Sciences and a Master of Economics (University of Paris I Panthéon-Sorbonne, 1991). He received a Post graduate diploma (DEA) in Mathematical Economy and Econometrics (1991) and a Master of Econometrics I (1990) from University of Paris.
edmond.baranes@univ-montp1.fr




Paul de BIJL (1967) is head of the department Competition & Regulation at CPB Netherlands Bureau for Economic Policy Analysis, the Dutch public think tank for economic policy research. Paul obtained a Ph.D. in Economics at CentER, Tilburg University, joint with the University of Toulouse, within the framework of European doctoral program ENTER. After that, he worked as a consultant at Science & Strategy, a researcher at CPB, policy advisor at the Financial and Economic Policy Directorate of the Ministry of Finance, and research coordinator of TILEC (Tilburg Law and Economics Center) at Tilburg University. Paul is fellow of ENCORE (Economics Network for Competition and Regulation) and extramural fellow of TILEC. His main research interests are regulatory economics, industrial organization, and electronic communications markets. With Martin Peitz he wrote the book Regulation and Entry into Telecommunications Markets (Cambridge University Press, 2002). Paul was guest editor (with Jos Huigen) of the special issue "Future Telecommunications Regulation: A Dutch Perspective" of Telecommunications Policy 32(11), 2008.




Michiel BIJLSMA (1971) currently works as a researches at the sector Competition and Regulation at Netherlands Bureau for Economic Policy Analysis (CPB), a Dutch government research institution. He finished his Ph.D. in Physics in 2000 at Utrecht University, the Netherlands, and worked as a senior economist for the Netherlands Competition Authority before joining the CPB. His research interest lies in the industrial organization of healthcare markets, telecommunication markets and financial markets


Vincent BONNEAU
is Senior Manager, Head of Internet Services Practice at IDATE. He is in charge of issues relating to the IT and Internet services industries' impact on the telecommunications market's offers, consumption and business strategies. His assignments focus on technological and marketing innovations in these two industries. Before coming to IDATE, Vincent worked as the "Internet Software and Technologies" attaché to the French Trade Commission (DREE) in San Francisco, in addition to having gained strategic operational and marketing experience working for Noos, Wanadoo and France Télécom in Paris. He is a graduate of the Ecole Polytechnique (1997) and the Ecole Nationale Supérieure des Télécommunications (2002), and holds a Masters Degree in New Technologies Management from the HEC business school (2002).
v.bonneau@idate.org



Claudia CURI holds a Ph.D. in Management Engineering from University of Rome, Tor Vergata. Her research focuses on theoretical and applied econometrics in productivity, economic growth, convergence and regulation. Currently, she is a researcher at the Luxembourg School of Finance, University of Luxembourg. She also serves as consultant to government institutions.
claudia.curi@uni.lu




Mats EDENIUS is Visiting Professor and director at Swedish IT-User Center, Uppsala University. He received his Ph.D. in 1996 from Stockholm University.  His research interests lies within the areas of information technology and knowledge management. At present, he is involved in different projects about information technologies and open innovation and collaboration processes.
mats.edenius@nita.uu.se


Michel GENSOLLEN
is currently working at the SES (Economics & Social sciences) department at TELECOM ParisTech. His
recent publications focus on cultural economics and the new business models of the information economy. He was in charge (2002-2004) of the project "Economics of Online Communities" (CNRS "Program on Information Society") and he was editor of the special issue "Virtual communities and online markets" (Revue d'Économie Politique, mars 2004).
http://www.gensollen.net/



Thierry ISCKIA is associate professor of Strategic Management at Telecom Ecole de Management. He is a member of CEMANTIC lab and of the joint lab of Institut TELECOM and Alcatel-Lucent Bell Labs. His research deals with collective strategies, knowledge management and innovation within business ecosystems. He spent six years in France Telecom R&D division working on Computer Supported Cooperative Work services and two years in Wanadoo as business analyst.


Viktória KOCSIS
(1973) is currently a researcher at the sector Competition and Regulation at CPB Netherlands Bureau for Economic Policy Analysis. She finished her Ph.D. in Economics in 2005 at Corvinus University of Budapest, Hungary. Between 2001 and 2005 Viktória was an assistant professor at the Department of Microeconomics at Corvinus University. She was a guest researcher at the Tinbergen Institute in the Netherlands between 2003 and 2005. In 2006 she participated in a project on network neutrality of the Internet commissioned by the Dutch Ministry of Economic Affairs and in collaboration with TILEC. Viktória's research interest lies in industrial organization and competition policy, particularly in regulation of network industries.



Niklas Z. KVISELIUS has a M.Sc. and Ph.D. from Stockholm School of Economics with specialization in International Business and Marketing. He currently does research on open innovation, aspects of trust in internationalization, and innovation and roll-out strategies in the ICT-industry. Much of his research has been focused on business relationships with the Japanese market. Niklas is a researcher at Uppsala University, associated to CIC at Stockholm School of Economics, and a JSPS Postdoctoral Fellow at Waseda University, Tokyo.
niklas.kviselius@hhs.se




Denis LESCOP is associate Professor of law and economics at Telecom Ecole de Management and head of the Innovation Research Group of CEMANTIC lab. He is also a member of the joint lab of Institut TELECOM and Alcatel-Lucent Bell Labs. His research focuses on the economic analysis of competition law and regulation in the electronic communications and media sectors. Previously, Denis worked as casehandler and economist for the Conseil de la concurrence (French competition Council): he was in charge of telecommuncations and media cases. Previous to that, he was head of statistical observatory and external studies unit at the Autorité de Régulation des Télécommunications (now ARCEP).


Gary MADDEN
's primary research area is the economic modelling of electronic networks. Within this gambit his particular research fields encompass theoretically motivated short time-series forecasting, the economics of disruptive technologies, digital divide issues, network externalities and Internet evolution, and the welfare impact of economic growth. He is the author of 83 peer-reviewed publications in these fields since 1993. He is a consultant to government and a Member of the Board of Directors of the International Telecommunications Society.



Paolo MANCUSO is Professor in Industrial Economics the Faculty of Engineering of the University of Rome 'Tor Vergata'. He received his Ph.D. in Engineering Management at the University of Rome 'Tor Vergata'. He has published papers in various international journals and conferences. His main research interests include industrial economics, microeconometrics and forecasting method. His research activity is actually focused on efficiency measurement through parametric and nonparametric methodologies.
paolo.mancuso@disp.uniroma2.it


Håkan OZAN
is a strategic management consultant at Computer Sciences Corporation (CSC) who is specialized in IT strategy and innovation management. He is the Innovation Manager of CSC Sweden and has an M.Sc in Computer Science and a B.Sc. in Economics. He has been working with, and researching, practical open innovation for several years and is currently the project manager of the Airport Living Lab at Stockholm-Arlanda Airport (an open innovation environment for the aviation industry) and the project manager of the Open Innovation Frameworks research project.
hozan@csc.com



Geoffrey PARKER is an Associate Professor of Economic Sciences at the A. B. Freeman School of Business at Tulane University and serves as Director of the Tulane Energy Institute. Parker has made contributions to the theory of network economics as co-developer of the theory of "two-sided" networks. Recent research includes multiple studies of the economics of business platform strategy, a cross-industry investigation of outsourced engineering projects, and a study of the performance of electric power markets. Parker's research has been funded by grants from the National Science Foundation, the Department of Energy, and multiple corporations. He received a B.S. degree from Princeton University, and M.S. & Ph.D. degrees from the Massachusetts Institute of Technology. Parker's work has appeared in journals such Harvard Business Review, the Journal of Economics and Management Strategy, Management Science, and Production and Operations Management.


Francis PISANI
, award winning author, blogger, and columnist, is a San Francisco Bay Area based technology correspondent for several European and Latin American media companies and web sites, among them El País (Madrid), LeMonde.fr (Paris) and Reforma (Mexico). His articles have been published by more than one hundred publications, in Europe, Latin America, the U.S. and Asia. Francis has just published a book in French How the web is changing the world (Pearson). He has lectured at UC-Berkeley, and at Stanford University. He teaches at the Institut d'Études Politiques in Paris. Francis was a '93 Nieman Fellow at Harvard University. He earned his masters in Law at the Faculté de droit (Paris), his masters in Political Science at the Institut d'Études Politiques (Paris) and his doctorate in Political Science-Latin American Studies at La Sorbonne (Paris).
Blog: Transnets.net (French), and www.soitu.es/soitu/transnets.html (Spanish).



John Paul SHEN leads the System Research Center in Nokia Research Center Palo Alto. Prior to joining Nokia in 2006, he was the Director of the Microarchitecture Research Lab at Intel, which was responsible for developing innovative microarchitecture and system architecture techniques that can be incorporated in microprocessor products and platforms from Intel. His teams of researchers (located in Santa Clara CA, Austin TX, and Hillsboro OR) worked closely and effectively with product development teams to create innovative technologies in the areas of out-of-order superscalar processors, speculative multithreading and memory prefetching, 3D die-stacking technology and architecture, and heterogeneous multi-sequencer architectures. Prior to joining Intel in 2000, he was a Professor in the Electrical and Computer Engineering Department of Carnegie Mellon University, where he supervised a total of 17 Ph.D. students and numerous MS students and received multiple teaching awards. John Paul Shen received his BS degree from the University of Michigan and his MS and Ph.D. degrees from the University of Southern California, all in Electrical Engineering.


Joacim TÅG
is a Research Fellow at the Research Institute of Industrial Economics in Stockholm/Sweden. His primary research field is industrial organization. Currently, his research is focused on competition and regulation in the telecommunications, media and technology industries, and on entrepreneurship and private equity. Joacim holds a B.Sc., M.Sc. and a Ph.D. in Economics from Hanken School of Economics in Helsinki/Finland.
www.ifn.se/joacimt



Marshall VAN ALSTYNE is an Associate Professor at Boston University and Visiting Professor at MIT. He received a BA from Yale, and MS & Ph.D. degrees from MIT. He has made significant contributions to the field of information economics. He coauthored the first proof that a market mechanism could reduce spam and create more value for users than even a perfect filter. As co-developer of the concept of "two sided" networks he has been a major contributor to theories of network effects. He designed and implemented one of the first projects to measure the dollar output of individual information workers. This research has generated multiple patent applications and received numerous awards, including an NSF Career Award and four best paper awards. Articles or commentary have appeared in Nature, Science, Management Science, Harvard Business Review, The New York Times, and The Wall Street Journal. Research is available at http://ssrn.com/author=253298.


XU Yan
is currently Associate Professor of the Department of Information Systems, Business Statistics and Operation Management of the HKUST Business School, Hong Kong University of Science and Technology (HKUST). He received his Ph.D. from the Strathclyde Business School of the UK in 1997. He had working experience in the former Ministry of Posts and Telecommunications (MPT) of China, Beijing University of Posts and Telecommunications, Tsukuba University of Japan, Hamburg University of Technology in Germany, British Telecom's Laboratories and the International Telecommunications Union (ITU). His research and teaching interests include technology and innovation management, and regulatory policy of telecommunications. He has provided extensive consulting and executive training for  various governmental and industrial organizations. He has published extensively in renowned international journals such as Telecommunications Policy. He has published two books entitled Chinese Telecommunications Policy (2002) and Innovated by Hong Kong (2009). He is currently on the board of executive directors of the International Telecommunications Society (ITS). He is also the committee member of ITU Telecom World Forum Advisory Committee. He has been appointed as President, Regulatory Issues Group of the Communications Association of Hong Kong (CAHK) since 2005 and executive board member of Hong Kong Telecommunications User Group since 2007. He has also been appointed as member of the Regulatory Affaires Advisory Committee (RAAC) by OFTA for the term 2008-2010. He is currently in the editorial board of Telecommunications policy, COMMUNICATIONS & STRATEGIES, INFO and Chinese Journal of Communications.


Top 
rss

News

Contact

Sophie NIGON
COMMUNICATIONS & STRATEGIES
Managing Editor
P: +33 (0)467 144 416
F: +33 (0)467 144 400
E-mail

Download