Exploring the impact of open innovation on firm performances
Purpose The purpose of this paper is to explore the relationships between the openness of firms and their innovation and financial performances. Design/methodology/approach In order to investigate such relationships, data on inbound and outbound open innovation (OI) processes and performances of 110 worldwide top research and development (R D) spending bio pharmaceutical companies are collected via the consolidated annual reports and the PATSTAT database. The time period of the analysis is 2008 2012. Findings Regarding innovation performances, R D productivity and revenues to patents ratio decrease with openness, whilst patents growth is not influenced by OI adoption. As to financial performances, sales growth exhibits a positive trend with openness, while operating profit and turnover decrease with OI adoption. Particularly, an inverted U relationship with inbound and a U shape one with outbound are observed as of operating profit. Research limitations/implications The study adds to the knowl.