Open Innovation in Brazil: Exploring Opportunities and Challenges
Keywords:Open Innovation, Emerging economies, Innovative resources and capabilities, Latecomer firms
Background: While open innovation has been increasingly adopted in developed countries, firms from emerging markets such as Brazil markedly fall behind this trend. Our understanding of the reasons behind this phenomenon remains limited, since most research focuses on the industrialized world.
Objective: The objective of this paper is to inspire the academic community to investigate the issue of why companies from emerging economies such as Brazil have limited open innovation strategies, when they need to draw on external partners as to overcome the institutional, resource and capability constraints they are subject to.
Method: We review current research on open innovation in general and especially in the Brazilian setting to develop a framework for studying this phenomenon and to suggest future research directions.
Results: We argue that latecomer firms in emerging economies need to actively use open innovation more than ever, as to overcome internal rigidities and spur the innovative resources and capabilities required for the digital transformation and for addressing grand societal challenges. We contend that the Brazilian setting is a relevant empirical context to study, giving the potential to uncover unique mechanisms and theoretical relations by asking (and possibly answering) novel research questions.
Conclusions: Building on a conceptual framework that links various implementation levels of open innovation, we identify themes that are either less well researched or contested and thereby suggest challenges and opportunities for future research.
Accenture (2015) Why Brazil must learn to Trust in Collaborative Innovation. Available at: https://www.accenture.com/t20151217T072753__w__/ie-en/_acnmedia/PDF-2/Accenture-Why-Brazil-Must-Learn-To-Trust-In-Collaborative-Innovation.pdf
Adhikary, S. (2018) Social Media is a Key Platform for Reaching Brazilian Consumers. Euromonitor Blog. Available at: https://blog.euromonitor.com/social-media-platform-brazilian-consumers/
Armellini, F., Kaminski, P.C. and Beaudry, C., (2014). The open innovation journey in emerging economies: an analysis of the Brazilian aerospace industry. Journal of Aerospace Technology and Management, 6(4), pp.462-474.
Bhagat, R. S.; Kedia, B. L.; Harveston, P. D. and Triandis, H. C. (2002). Cultural variations in the cross-border transfer of organizational knowledge: An integrative framework. Academy of Management Review, vol. 27, pp. 204-221.
Bianchi, M., Chiaroni, D., Chiesa, V., & Frattini, F. (2011). Exploring the role of human resources in technology out-licensing: an empirical analysis of biotech new technology-based firms. Technology Analysis & Strategic Management, 23(8): 825-849.
Bogers, M., Chesbrough, H., & Moedas, C. 2018. Open innovation: Research, practices, and policies. California Management Review, 60(2): 5-16.
Bogers, M., Foss, N. J., & Lyngsie, J. (2018). The “human side” of open innovation: The role of employee diversity in firm-level openness. Research Policy, 47(1): 218-231.
Buganza, T., Chiaroni, D., Colombo, G., & Frattini, F. (2011). Organisational Implications of Open Innovation: An Analysis of Inter-industry Patterns. International Journal of Innovation Management, 15(2): 423 - 455.
Burcharth, A., Knudsen, M. P., & Søndergaard, H. A. (2014). Neither Invented Nor Shared Here: The Impact and Management of Attitudes for the Adoption of Open Innovation Practices. Technovation, 34(3): 149-161.
Burcharth, A., Præst Knudsen, M., & Søndergaard, H. A. (2017). The role of employee autonomy for open innovation performance. Business Process Management Journal, 23(6), 1245-1269.
Cassiman, B., & Valentini, G. (2016). Open innovation: Are inbound and outbound knowledge flows really complementary. Strategic Management Journal, 37(6), 1034-1046.
Cassiman, B., & Veugelers, R. (2006). In Search of Complementarity in Innovation Strategy: Internal R&D and External Knowledge Acquisition. Management Science, 52, 68-82.
Chesbrough, H.W. and Appleyard, M.M. (2007). Open innovation and strategy. California Management Review, 50(1), pp.57-76.
Chesbrough, H. & Bogers, M. (2014) Explicating open innovation: Clarifying an emerging paradigm for understanding industrial innovation. In: H. Chesbrough, W. Vanhaverbeke, & J. West (Eds.), New Frontiers in Open Innovation. Oxford: Oxford University Press, pp. 3-28.
Chesbrough, H. 2003. Open Innovation: The New Imperative for Creating and Profiting from Technology. Boston, Massachusetts: Harvard Business School Press.
Cohen, W. M., & Levinthal, D. A. (1990) Absorptive Capacity: A New Perspective on Learning and Innovation. Administrative Science Quarterly, 35(1): 128-152.
Conti, R., Gambardella, A., & Novelli, E. (2013) Research on Markets for Inventions and Implications for R&D Allocation Strategies. Academy of Management Annals, 7(1), 717-774.
Cornell University, INSEAD, and WIPO (2018): The Global Innovation Index 2018: Energizing the World with Innovation. Ithaca, Fontainebleau, and Geneva.
Dahlander, L., & Gann, D. M. (2010). How Open is Innovation? Research Policy, 39(6), 699-709.
de Paulo, A. F., Carvalho, L. C., Costa, M. T. G., Lopes, J. E. F., & Galina, S. V. (2017). Mapping Open Innovation: A Bibliometric Review to Compare Developed and Emerging Countries. Global Business Review, 18(2), 291-307.
Eisenhardt, K. M. and Graebner, M. E. (2007) Theory building from cases: opportunities and challenges. Academy of management journal, 50, 25-32.
Faems, D., de Visser, M., Andries, P., & van Looy, B. (2010). Technology Alliance Portfolios and Financial Performance: Value-Enhancing and Cost-Increasing Effects of Open Innovation. Journal of Product Innovation Management, 27(6), 785-796.
Felin, T., & Zenger, T. R. (2014). Closed or open innovation? Problem solving and the governance choice. Research Policy, 43(5), 914-925.
Figueiredo, P., Silveira, G. and Sbragia, R., 2008. Risk sharing partnerships with suppliers: the case of Embraer. Journal of Technology Management & Innovation, 3(1), pp.27-37.
Foss, N. J., Laursen, K., & Pedersen, T. (2011). Linking Customer Interaction and Innovation: The Mediating Role of New Organizational Practices. Organization Science, 22(4): 980-999.
Fu, X. (2012) How Does Openness Affect the Importance of Incentives for Innovation? Research Policy, 41: 512-523.
Fu, X., Li, J., Xiong, H., & Chesbrough, H. (2014). Open Innovation as a Response to Constraints and Risks: Evidence from China. Asian Economic Papers, 13(3), 30-58.
Fosfuri, A. (2006). The Licensing Dilemma: Understanding the Determinants of the Rate of Technology Licensing. Strategic Management Journal, 27(12), 1141-1158.
Gambardella, A., & Panico, C. (2014). On the management of open innovation. Research Policy, 43(5): 903-913.
Gassmann, O., Enkel, E., & Chesbrough, H. (2010). The future of open innovation. R&D Management, 40, 213-221.
George, G., Howard-Grenville, J., Joshi, A., & Tihanyi, L. (2016) Understanding and tackling societal grand challenges through management research. Academy of Management Journal, 59(6): 1880-1895.
Guerrero, M., & Urbano, D. (2017). The impact of Triple Helix agents on entrepreneurial innovations' performance: An inside look at enterprises located in an emerging economy. Technological Forecasting and Social Change, 119, 294-309.
Huizingh, E. K. R. E. (2011). Open Innovation: State of The Art and Future Perspectives. Technovation, 31(1), 2-9.
Huston, L., & Sakkab, N. (2006). Connect and develop. Harvard Business Review, 84(3), 58-66.
IMD (2018) IMD World Competitiveness Rankings 2018 Results. Available at: https://www.imd.org/wcc/world-competitiveness-center-rankings/world-competitiveness-ranking-2018/
Inglehart, R., C. Haerpfer, A. Moreno, C. Welzel, K. Kizilova, J. Diez-Medrano, M. Lagos, P. Norris, E. Ponarin & B. Puranen et al. (eds.). 2014. World Values Survey: All Rounds - Country-Pooled Datafile Version: http://www.worldvaluessurvey.org/WVSDocumentationWVL.jsp. Madrid: JD Systems Institute.
Knudsen, M. P., & Mortensen, T. B. (2011). Some Immediate - but Negative - Effects of Openness on Product Development Performance. Technovation, 31, 54-64.
Laursen, K., & Salter, A. (2006). Open for Innovation: The Role of Openness in Explaining Innovation Performance Among U.K. Manufacturing Firms. Strategic Management Journal, 27(2): 131-150.
Luo, Y. (2005). How important are shared perceptions of procedural justice in cooperative alliances? Academy of Management Journal, vol. 48, pp. 695-709.
Li, J., & Kozhikode, R. K. (2009). Developing new innovation models: Shifts in the innovation landscapes in emerging economies and implications for global R&D management. Journal of International Management, 15(3), 328-339.
Menon, T., & Pfeffer, J. (2003). Valuing internal vs. external knowledge: Explaining the preference for outsiders. Management Science, 49(4), 497-513.
Milagres, R. & Burcharth, A. (2019) "Knowledge transfer in interorganizational partnerships: what do we know?" Business Process Management Journal, 25(1), p.27-68.
Nambisan, S., Lyytinen, K., Majchrzak, A., & Song, M. (2017). Digital innovation 4management: Reinventing innovation management research in a digital world. MIS Quarterly, 41(1), p. 223-238.
Nagano, M. S., Stefanovitz, J. P., & Vick, T. E. (2014). Innovation management processes, their internal organizational elements and contextual factors: An investigation in Brazil. Journal of Engineering and Technology Management, 33, 63-92.
Perez, C. & Soete, L. (1988) Catching up in technology: entry barriers and windows of opportunity. In G.Dosi et al. (eds.) Technical Change and Economic Theory, London: Francis Pinter, pp. 458-479.
Pisano, G. P., & Verganti, R. (2008). What Kind of Collaboration Is Right for You? Harvard Business Review, 86(12), 78-87.
Pitassi, C. (2014). Inovação aberta nas estratégias competitivas das empresas brasileiras. REBRAE, 7(1), 18-36.
PINTEC (2014) IBGE. Pesquisa industrial de inovação tecnológica. Instituto Brasileiro de Geografia e Estatística. Rio de Janeiro. 2016.
Powell, W. W., Doput, K. W., & Smith-Doerr, L. (1996). Interorganizational collaboration and the locus of innovation: networks of learning in biotechnology. Administrative Science Quarterly, 41(1), 116-145.
Randhawa, K., Wilden, R., & Hohberger, J. (2016). A bibliometric review of open innovation: Setting a research agenda. Journal of Product Innovation Management, 33(6), 750-772.
Sabino de Freitas, A., Filardi, F., de Oliveira Lott, A. C., & Braga, D. (2017). Inovação Aberta nas Empresas Brasileiras: Uma Análise da Produção Acadêmica no Período de 2003 a 2016. Revista Ibero Americana de Estratégia, 16(3), 22-38.
Saldanha, F.P., Cohendet, P. and Pozzebon, M., 2014. Challenging the stage-gate model in crowdsourcing: The case of Fiat Mio in Brazil. Technology Innovation Management Review, 4(9).
Salter, A., Criscuolo, P., & Wal, A. L. J. T. (2014) Coping with Open Innovation: Responding to the challenges of external engagement in R&D California Management Review, 56(2), 77-94.
Schilling, M. A. (2015). Technology shocks, technological collaboration, and innovation outcomes. Organization Science, 26(3), 668-686.
Stanko, M. A., Fisher, G. J., & Bogers, M. (2017). Under the wide umbrella of open innovation. Journal of Product Innovation Management, 34(4), 543-558.
Temel, S., Mention, A. L., & Torkkeli, M. (2013). The impact of cooperation on firms’ innovation propensity in emerging economies. Journal of Technology Management & Innovation, 8(1), 54-64.
The Guardian (2018) Brazilian Car Wash scandal draws in Glencore and Trafigura. Published on December 5th, 2018. Available at: https://www.theguardian.com/world/2018/dec/05/brazil-car-wash-scandal-drags-in-glencore-trafigura-vitol
Van de Vrande, V., Jong, J. P. J. D., Vanhaverbeke, W., & Rochemont, M. D (2009) Open Innovation in SMEs: Trends, Motives and Management Challenges. Technovation, 29(6-7): 423-437.
West, J., & Bogers, M. (2014). Leveraging External Sources of Innovation: A Review of Research on Open Innovation. Journal of Product Innovation Management, 31(4): 814-831.
West, J., Salter, A., Vanhaverbeke, W., & Chesbrough, H. (2014). Open innovation: The next decade. Research Policy, 43(5): 805-811.
Williamson, O. E. (1975). Markets and hierarchies: Analysis and antitrust implications. New York: Free Press.
How to Cite
Copyright (c) 2020 International Journal of Professional Business Review
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Authors who publish in this journal agree to the following terms: the author(s) authorize(s) the publication of the text in the journal;
The author(s) ensure(s) that the contribution is original and unpublished and that it is not in the process of evaluation by another journal;
The journal is not responsible for the views, ideas and concepts presented in articles, and these are the sole responsibility of the author(s);
The publishers reserve the right to make textual adjustments and adapt texts to meet with publication standards.
Authors retain copyright and grant the journal the right to first publication, with the work simultaneously licensed under the Creative Commons Atribuição NãoComercial 4.0 (http://creativecommons.org/licenses/by-nc/4.0/), which allows the work to be shared with recognized authorship and initial publication in this journal.
Authors are allowed to assume additional contracts separately, for non-exclusive distribution of the version of the work published in this journal (e.g. publish in institutional repository or as a book chapter), with recognition of authorship and initial publication in this journal.
Authors are allowed and are encouraged to publish and distribute their work online (e.g. in institutional repositories or on a personal web page) at any point before or during the editorial process, as this can generate positive effects, as well as increase the impact and citations of the published work (see the effect of Free Access) at http://opcit.eprints.org/oacitation-biblio.html