The Open Innovation Paradigm: Two case studies of Rio Grande do Sul companies

Abstract

The process of generation and diffusion of innovations is critical to the progress of nations and, specifically, to increase the competitiveness of businesses. Developing learning skills, seeking new knowledge and applying them to aggregate value, has become essential for the growth of firms. In this context, a current discussion refers to the model of ‘Open Innovation’. The general principle of this model assumes that knowledge is found in different parts of the firm´s value chain and, in this sense, a way for the innovations generation is pushing the boundaries of the firm to the external environment. However, it is clear that this practice is not easily put into practice because it requires some cognitive skills that allow firms to have a position to absorb external knowledge. Considering these issues, this research seeks to understand if the practice of ‘Open Innovation’ exists and how it is in practice in industrial firms considered innovative. To this end, we chose to conduct two case studies on firms of metal-mechanic industry of Rio Grande do Sul. The main results reveal that these companies engage in ‘Open Innovation’ regarding interaction to exchange knowledge. However, the extent of intellectual property as an opportunity to increase profits and the business model’s diversification are not yet part of the firm’s strategies. It appears therefore that the open innovation model in the analyzed companies occurs in the traditional forms of knowledge exchange and thus the practice of open innovation is limited. There is a considerable gap to be overcome so that the transmission of knowledge can occur in a more fluid and intense way.

Key words: open innovation, innovative industrial firms, case studies.