Understanding the advantages of open innovation practices in corporate venturing in terms of real options

W. Wim Vanhaverbeke; V. Van De Vrande

doi:10.1109/IEEM.2008.4738011

Understanding the advantages of open innovation practices in corporate venturing in terms of real options

W. Wim Vanhaverbeke, V. Van De Vrande

Department of Strategic Management and Entrepreneurship

Research output: Chapter/Conference proceeding › Conference proceeding › Academic › peer-review

5 Citations (Scopus)

Abstract

Part of the advantages of using an open innovation (compared to closed innovation) in corporate venturing can be explained by applying the real options approach. Open innovation in risk-laden activities such as corporate venturing has the following advantages: i. benefits from early involvement in new technologies or business opportunities, ii. delayed financial commitment, iii. early exits reducing the downward losses, and iv. delayed exit in case it spins off a venture. We furthermore argue that these benefits do not automatically materialize. Innovation firms have to learn new skills and routines to develop the full 'real option'-potential of open innovation practices.

Original language	English
Title of host publication	2008 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2008
Pages	954-958
Number of pages	5
DOIs	https://doi.org/10.1109/IEEM.2008.4738011
Publication status	Published - 2008
Event	2008 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2008 - Singapore, Singapore Duration: 8 Dec 2008 → 11 Dec 2008

Conference

Conference	2008 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2008
Country/Territory	Singapore
City	Singapore
Period	8/12/08 → 11/12/08

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10.1109/IEEM.2008.4738011

Cite this

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title = "Understanding the advantages of open innovation practices in corporate venturing in terms of real options",

abstract = "Part of the advantages of using an open innovation (compared to closed innovation) in corporate venturing can be explained by applying the real options approach. Open innovation in risk-laden activities such as corporate venturing has the following advantages: i. benefits from early involvement in new technologies or business opportunities, ii. delayed financial commitment, iii. early exits reducing the downward losses, and iv. delayed exit in case it spins off a venture. We furthermore argue that these benefits do not automatically materialize. Innovation firms have to learn new skills and routines to develop the full 'real option'-potential of open innovation practices.",

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Vanhaverbeke, WW & Van De Vrande, V 2008, Understanding the advantages of open innovation practices in corporate venturing in terms of real options. in 2008 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2008., 4738011, pp. 954-958, 2008 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2008, Singapore, Singapore, 8/12/08. https://doi.org/10.1109/IEEM.2008.4738011

Understanding the advantages of open innovation practices in corporate venturing in terms of real options. / Vanhaverbeke, W. Wim; Van De Vrande, V.
2008 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2008. 2008. p. 954-958 4738011.

Research output: Chapter/Conference proceeding › Conference proceeding › Academic › peer-review

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Understanding the advantages of open innovation practices in corporate venturing in terms of real options

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