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Proceedings of the 8th International Conference on Intellectual ...

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Giedrius Jucevičius<br />

form for own purposes (e.g. incorporate into s<str<strong>on</strong>g>of</str<strong>on</strong>g>tware that is later taken to <str<strong>on</strong>g>the</str<strong>on</strong>g> market). However, in a<br />

well-crafted business model, <str<strong>on</strong>g>the</str<strong>on</strong>g> benefits <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge partnership outweigh <str<strong>on</strong>g>the</str<strong>on</strong>g> possible free rider<br />

effects because innovators retain o<str<strong>on</strong>g>the</str<strong>on</strong>g>r sources to make pr<str<strong>on</strong>g>of</str<strong>on</strong>g>its.<br />

A distincti<strong>on</strong> should be made between private open innovati<strong>on</strong> and open source innovati<strong>on</strong> (Huizingh,<br />

2011). Both can be characterised by <str<strong>on</strong>g>the</str<strong>on</strong>g> open process (i.e. involving multiple outsiders in product<br />

development), yet differing in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> outcome, which remains open in <str<strong>on</strong>g>the</str<strong>on</strong>g> case <str<strong>on</strong>g>of</str<strong>on</strong>g> open source<br />

innovati<strong>on</strong> (e.g. Linux) and closed in <str<strong>on</strong>g>the</str<strong>on</strong>g> case <str<strong>on</strong>g>of</str<strong>on</strong>g> private open innovati<strong>on</strong>. In <str<strong>on</strong>g>the</str<strong>on</strong>g> latter case, things<br />

usually get more complicated. There is always a potential trade-<str<strong>on</strong>g>of</str<strong>on</strong>g>f situati<strong>on</strong> between <str<strong>on</strong>g>the</str<strong>on</strong>g> public<br />

participati<strong>on</strong> and private appropriati<strong>on</strong> unless “<str<strong>on</strong>g>the</str<strong>on</strong>g> best <str<strong>on</strong>g>of</str<strong>on</strong>g> two worlds” soluti<strong>on</strong> is achieved.<br />

Three major models <str<strong>on</strong>g>of</str<strong>on</strong>g> co-creati<strong>on</strong> that have recently emerged in <str<strong>on</strong>g>the</str<strong>on</strong>g> new industrial paradigm <str<strong>on</strong>g>of</str<strong>on</strong>g> peer<br />

producti<strong>on</strong> can be distinguished (Bauwens, 2009):<br />

Comm<strong>on</strong>s-centred peer producti<strong>on</strong> where community plays <str<strong>on</strong>g>the</str<strong>on</strong>g> key role, is str<strong>on</strong>g enough to<br />

sustain its own infrastructure and to cooperate with <str<strong>on</strong>g>the</str<strong>on</strong>g> market players (e.g. Linux open source<br />

s<str<strong>on</strong>g>of</str<strong>on</strong>g>tware). The value <str<strong>on</strong>g>of</str<strong>on</strong>g> such knowledge partnerships remains public (e.g. protected by GPL<br />

licence).<br />

Sharing envir<strong>on</strong>ment, where <str<strong>on</strong>g>the</str<strong>on</strong>g> platform for knowledge sharing is owned by third party (e.g.<br />

company), which m<strong>on</strong>etizes <str<strong>on</strong>g>the</str<strong>on</strong>g> attenti<strong>on</strong> space, while <str<strong>on</strong>g>the</str<strong>on</strong>g> community <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge sharers has<br />

indirect influence over <str<strong>on</strong>g>the</str<strong>on</strong>g> platform. The value is appropriated by <str<strong>on</strong>g>the</str<strong>on</strong>g> platform owner and <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

community members (e.g. protected by <str<strong>on</strong>g>the</str<strong>on</strong>g> Creative Comm<strong>on</strong>s licence).<br />

Crowdsourced envir<strong>on</strong>ment, where knowledge providers are isolated from each o<str<strong>on</strong>g>the</str<strong>on</strong>g>r, even<br />

competing against each o<str<strong>on</strong>g>the</str<strong>on</strong>g>r for <str<strong>on</strong>g>the</str<strong>on</strong>g> benefits (e.g. m<strong>on</strong>etary prize) <str<strong>on</strong>g>of</str<strong>on</strong>g>fered by <str<strong>on</strong>g>the</str<strong>on</strong>g> platform owner.<br />

There is no community solidarity and <str<strong>on</strong>g>the</str<strong>on</strong>g> benefits are appropriated by <str<strong>on</strong>g>the</str<strong>on</strong>g> owner <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> platform<br />

(e.g. by providing an award for <str<strong>on</strong>g>the</str<strong>on</strong>g> best “crowdsourced” soluti<strong>on</strong>)<br />

So far <str<strong>on</strong>g>the</str<strong>on</strong>g> discussi<strong>on</strong> was more about <str<strong>on</strong>g>the</str<strong>on</strong>g> incentives and safeguards from <str<strong>on</strong>g>the</str<strong>on</strong>g> perspective <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> lead<br />

partner who initiates <str<strong>on</strong>g>the</str<strong>on</strong>g> knowledge sharing. However, any successful knowledge exchange is a twoway<br />

process, thus <strong>on</strong>e should also address <str<strong>on</strong>g>the</str<strong>on</strong>g> main incentives behind <str<strong>on</strong>g>the</str<strong>on</strong>g> partner participati<strong>on</strong> in<br />

knowledge partnership. Understanding <str<strong>on</strong>g>the</str<strong>on</strong>g> incentives behind <str<strong>on</strong>g>the</str<strong>on</strong>g> involvement <str<strong>on</strong>g>of</str<strong>on</strong>g> network actors will<br />

also help envisage <str<strong>on</strong>g>the</str<strong>on</strong>g> appropriate mechanisms <str<strong>on</strong>g>of</str<strong>on</strong>g> c<strong>on</strong>trol.<br />

The research <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> open innovati<strong>on</strong> has shown that companies perform more inbound than<br />

outbound activities, i.e. are more willing to attract <str<strong>on</strong>g>the</str<strong>on</strong>g> external knowledge-related resources than to<br />

open up <str<strong>on</strong>g>the</str<strong>on</strong>g>ir own resources to o<str<strong>on</strong>g>the</str<strong>on</strong>g>r stakeholders. Many firms are still largely protective <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>ir own<br />

intellectual capital (e.g. fearing to give away <str<strong>on</strong>g>the</str<strong>on</strong>g>ir “golden goose” in <str<strong>on</strong>g>the</str<strong>on</strong>g> innovati<strong>on</strong> market), while <str<strong>on</strong>g>the</str<strong>on</strong>g>ir<br />

main c<strong>on</strong>cern should be about appropriati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> pr<str<strong>on</strong>g>of</str<strong>on</strong>g>its from innovati<strong>on</strong> (Huizingh, 2011).<br />

One should distinguish between two types <str<strong>on</strong>g>of</str<strong>on</strong>g> methods for capturing value from innovati<strong>on</strong>s – formal<br />

and informal (Huizingh, 2011). The formal methods rely mainly <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> legal means <str<strong>on</strong>g>of</str<strong>on</strong>g> protecti<strong>on</strong>, such<br />

as copyright, trademark or patent protecti<strong>on</strong>, which are <str<strong>on</strong>g>of</str<strong>on</strong>g>ten hard to enforce while participating in <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

knowledge partnerships. The informal methods include <str<strong>on</strong>g>the</str<strong>on</strong>g> first mover advantage, <str<strong>on</strong>g>the</str<strong>on</strong>g> lock-in <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

customers, network and tipping effects.<br />

There is a bulk <str<strong>on</strong>g>of</str<strong>on</strong>g> research showing that formal methods, such as patents, are not quite useful for<br />

capturing <str<strong>on</strong>g>the</str<strong>on</strong>g> commercial value in many industries (except chemicals and pharmaceuticals), while <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

absolute majority <str<strong>on</strong>g>of</str<strong>on</strong>g> patents remain unused by <str<strong>on</strong>g>the</str<strong>on</strong>g>ir owners. The copyright <strong>on</strong>ly protects <str<strong>on</strong>g>the</str<strong>on</strong>g> original<br />

piece <str<strong>on</strong>g>of</str<strong>on</strong>g> work, but not <str<strong>on</strong>g>the</str<strong>on</strong>g> ideas and c<strong>on</strong>cepts, which are very easily leaked into <str<strong>on</strong>g>the</str<strong>on</strong>g> outside world. On<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r hand, <str<strong>on</strong>g>the</str<strong>on</strong>g> informal methods seem to be <str<strong>on</strong>g>of</str<strong>on</strong>g> greater use for capturing <str<strong>on</strong>g>the</str<strong>on</strong>g> ultimate value,<br />

especially in <str<strong>on</strong>g>the</str<strong>on</strong>g> open innovati<strong>on</strong> envir<strong>on</strong>ment. They rely more <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> social-ec<strong>on</strong>omic behaviour <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

actors (e.g. building <str<strong>on</strong>g>the</str<strong>on</strong>g> critical mass <str<strong>on</strong>g>of</str<strong>on</strong>g> customers) than <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> legal provisi<strong>on</strong>s and are more suitable<br />

in <str<strong>on</strong>g>the</str<strong>on</strong>g> envir<strong>on</strong>ment <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge exchange. Never<str<strong>on</strong>g>the</str<strong>on</strong>g>less, <strong>on</strong>e can find a plenty <str<strong>on</strong>g>of</str<strong>on</strong>g> networks and<br />

communities <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledgeable stakeholders, which fail to deliver a fully functi<strong>on</strong>ing revenue model.<br />

The c<strong>on</strong>trol and commercializati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> value out <str<strong>on</strong>g>of</str<strong>on</strong>g> open knowledge partnerships in many instances<br />

still retains its c<strong>on</strong>troversies.<br />

4. M<strong>on</strong>etary vs. n<strong>on</strong>-m<strong>on</strong>etary incentives <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge sharing<br />

The decisi<strong>on</strong> to participate in open collaborati<strong>on</strong>s is driven by two sets <str<strong>on</strong>g>of</str<strong>on</strong>g> incentives – m<strong>on</strong>etary and<br />

n<strong>on</strong>-m<strong>on</strong>etary. The role <str<strong>on</strong>g>of</str<strong>on</strong>g> m<strong>on</strong>etary and n<strong>on</strong>-m<strong>on</strong>etary incentives depends to a large extent <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

268

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