Open innovation in nascent ventures: Does openness influence the speed of reaching critical milestones?

Adrian Toroslu, Andrea M. Herrmann, Maryse M.H. Chappin, Brita Schemmann and Carolina Castaldi

Technovation, 2023, vol. 124, issue C

Abstract: Research on open innovation (OI) has demonstrated the benefits of openness for firm innovation processes, but studies have mostly offered cross-sectional insights on incumbent firms. This study offers a more dynamic perspective on the relevance of OI for nascent ventures. Combining entrepreneurship and OI theories, we argue that it is key for resource-scarce nascent ventures to achieve critical venture-creation milestones. While OI can help these ventures to leverage salient external partnerships, we argue that it affects their speed of reaching these milestones. We test our hypotheses on a longitudinal sample focusing on external collaboration practices of nascent ventures in the renewable energy or information and communications technology industries. Our results show that, while engaging in R&D collaborations slows down nascent ventures’ product development and sustainable profit generation activities, joining industry associations does not have a slow-down effect. Our results complement the OI literature by warning about the downsides of openness for nascent ventures, particularly during the venture creation phase, where speed is a high priority.

Keywords: Open innovation; Nascent ventures; Time to market; Time to profitability; R&D collaborations; Resource scarcity (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:techno:v:124:y:2023:i:c:s0166497223000433

DOI: 10.1016/j.technovation.2023.102732

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