Challenges of open innovation: the paradox of firm investment in open-source software

Open innovation is a powerful framework encompassing the generation, capture, and employment of intellectual property at the firm level. We identify three fundamental challenges for firms in applying the concept of open innovation: finding creative ways to exploit internal innovation, incorporating external innovation into internal development, and motivating outsiders to supply an ongoing stream of external innovations. This latter challenge involves a paradox, why would firms spend money on R&D efforts if the results of these efforts are available to rival firms? To explore these challenges, we examine the activity of firms in opensource software to support their innovation strategies. Firms involved in open-source software often make investments that will be shared with real and potential rivals. We identify four strategies firms employ – pooled R&D/product development, spinouts, selling complements and attracting donated complements – and discuss how they address the three key challenges of open innovation. We conclude with suggestions for how similar strategies may apply in other industries and offer some possible avenues for future research on open innovation

Innovation and the Evolution of Market Structure for Internet Access in the United States

How and why did the U.S. commercial Internet access market structure evolve during its first decade? Commercial Internet access market structure arose from a propitious combination of inherited market structures from communications and computing, where a variety of firms already flourished and entrepreneurial norms prevailed. This setting nurtured innovative behavior across such key features as pricing, operational practices, and geographic coverage. Inherited regulatory decisions in communications markets had a nurturing effect on innovative activity. On-going regulatory decisions also shaped the market’s evolution, sometimes nurturing innovation and sometimes not. This narrative and analysis informs conjectures about several unique features of U.S. market structure and innovative behavior. It also informs policy debates today about the role of regulation in nurturing or discouraging innovation behavior.

Body language, security and e-commerce

Security is becoming an increasingly more important concern both at the desktop level and at the network level. This article discusses several approaches to authenticating individuals through the use of biometric devices. While libraries might not implement such devices, they may appear in the near future of desktop computing, particularly for access to institutional computers or for access to sensitive information. Other approaches to computer security focus on protecting the contents of electronic transmissions and verification of individual users. After a brief overview of encryption technologies, the article examines public-key cryptography which is getting a lot of attention in the business world in what is called public key infrastructure. It also examines other efforts, such as IBM’s Cryptolope, the Secure Sockets Layer of Web browsers, and Digital Certificates and Signatures. Secure electronic transmissions are an important condition for conducting business on the Net. These business transactions are not limited to purchase orders, invoices, and contracts. This could become an important tool for information vendors and publishers to control access to the electronic resources they license. As license negotiators and contract administrators, librarians need to be aware of what is happening in these new technologies and the impact that will have on their operations

Open Source Software: From Open Science to New Marketing Models

-Open source Software; Intellectual Property; Licensing; Business Model.

GIS and urban design

Although urban planning has used computer models and information systems sincethe 1950s and architectural practice has recently restructured to the use of computeraideddesign (CAD) and computer drafting software, urban design has hardly beentouched by the digital world. This is about to change as very fine scale spatial datarelevant to such design becomes routinely available, as 2dimensional GIS(geographic information systems) become linked to 3dimensional CAD packages,and as other kinds of photorealistic media are increasingly being fused with thesesoftware. In this chapter, we present the role of GIS in urban design, outlining whatcurrent desktop software is capable of and showing how various new techniques canbe developed which make such software highly suitable as basis for urban design.We first outline the nature of urban design and then present ideas about how varioussoftware might form a tool kit to aid its process. We then look in turn at: utilisingstandard mapping capabilities within GIS relevant to urban design; buildingfunctional extensions to GIS which measure local scale accessibility; providingsketch planning capability in GIS and linking 2-d to 3-d visualisations using low costnet-enabled CAD browsers. We finally conclude with some speculations on thefuture of GIS for urban design across networks whereby a wide range of participantsmight engage in the design process digitally but remotely

Clustering in ICT: From Route 128 to Silicon Valley, from DEC to Google, from Hardware to Content

One of the pioneers in academic entrepreneurship and high-tech clustering is MIT and the Route 128/Boston region. Silicon Valley centered around Stanford University was originally a fast follower and only later emerged as a scientific and industrial hotspot. Several technology and innovation waves, have shaped Silicon Valley over all the years. The initial regional success of Silicon Valley started with electro-technical instruments and defense applications in the 1940s and 1950s (represented by companies as Litton Engineering and Hewlett & Packard). In the 1960s and 1970s, the region became a national and international leader in the design and production of integrated circuit and computer chips, and as such became identified as Silicon Valley (e.g. Fairchild Semiconductor, and Intel). In the 1970s and 1980s, Silicon Valley capitalised further on the development, manufacturing and sales of the personal computer and workstations (e.g. Apple, Silicon Graphics and SUN), followed by the proliferation of telecommunications and Internet technologies in the 1990s (e.g. Cisco, 3Com) and Internet-based applications and info-mediation services (e.g. Yahoo, Google) in the late 1990s and early 2000s. When the external and/or internal conditions of its key industries change, Silicon Valley seemed to have an innate capability to restructure itself by a rapid and frequent reshuffling of people, competencies, resources and firms. To characterise the demise of one firm leading, directly or indirectly, to the formation of another and the reconfiguration of business models and product offerings by the larger companies in emerging industries, Bahrami & Evans (2000) introduced the term `flexible recycling.’ This dynamic process of learning by doing, failing and recombining (i.e. allowing new firms to rise from the ashes of failed enterprises) is one of the key factors underlying the dominance of Silicon Valley in the new economy.ICT;Clusters;Networks;Academic entrepreneurship;MIT;Silicon Valley;Stanford University;Flexible recycling;Route 128

IMSA360: Summer 2009

Many will measure IMSA’s work to “ignite and nurture creative, ethical scientific minds that advance the human condition” by the contributions of our alumni. I am proud to say that we pass that rigorous test with flying colors. Sixty percent of our alumni earn undergraduate degrees in science, technology, engineering or mathematics (STEM) compared to the national average of 33 percent. As undergraduate and graduate students, they attend the most highly selective colleges and universities in the nation, earning numerous academic, research and leadership accolades including Fulbright, Marshall, National Science Foundation, Rhodes, Truman and Siebel Scholarships. Throughout their careers, alumni forge frontiers as nationally recognized scientists, entrepreneurs, engineers, physicians, information technology experts, military officers and leaders in other fields. The feature story of this issue of IMSA360 shares more than statistics about our alumni. It profiles individuals who, day in and day out, use their talents to create a better world. Some alumni produce sweeping breakthroughs that impact many citizens, whereas others profoundly impact individuals, one life at a time. While each alumnus has a different story, one theme cuts across all stories—a desire to make a difference. Excerpt: From the Presiden

Dynamic Leadership: Toolbox for the Values-Based Entrepreneur

Four entrepreneurship models are proposed which lend guidance in the development of a business, from birth to exit, each examining ways to maintain the business founder’s initial vision and to continue to infuse values and ethical decision-making at each stage of development