(The) effect of open innovation on industry concentration

Abstract

Thanks to the innovation, an organization which successfully innovates in a new way can improve its. As a result of innovation success, the phenomenon of “Schumpeterian Competition” appears in many industries. The environment for innovation has radically changed and the “Open Innovation” concept has risen. It is of interest to try to attain a fruitful result of Schumpeterian Competition under open innovation. This thesis investigates how open innovation influences organization’s innovation performance and structure. Through simulation, it experiments open innovation effects on industry concentration in various perspectives. The analysis result implies that Schumpeterian Dynamics works under open innovation.