Micro and macro dynamics of open innovation with quadruple-Helix

This paper explores how sustainability can be achieved through open innovation in the current 4th industrial revolution. Through a literature and practice review, we identify micro- and macro-dynamics of open innovation in addition to the dynamic roles of industry, government, university, and society. In particular, the industry continuously adopts open platforms to create and maintain ecosystem innovation. The government's role has changed from regulation control toward facilitation. Universities have become proactively engaged in multiple areas, from technology transfer to knowledge co-creation. Societies and customers have started to form new concepts, R&D, and commercialization, resulting in a shared economy. Based on the analysis, we propose a conceptual framework to understand open innovation micro- and macro-dynamics with a quadruple-helix model for social, environmental, economic, cultural, policy, and knowledge sustainability. Furthermore, this provides an overview of the special issue, Sustainability of Economy, Society, and Environment in the 4th Industrial Revolution, which aims to respond to the 4th industrial revolution in terms of open innovation and cyber-physics from manufacturing to the service industry.1

Open innovation in value chain for sustainability of firms (Editorial)

This piece serves as the guest editorial of the Special Issue on the ‘Open Innovation in Value Chain for Sustainability of Firms’. Firstly, this editorial piece asks whether it is possible for firms to sustain their performance forever. Then, it reviews the popular literature on the value chain. Afterwards, it develops a research framework for open innovation in the value chain, and proposes five ways of open innovation taking place within it. These include user open innovation, customer open innovation, common profit community, together growth community, and inner open innovation. Lastly, this editorial introduces articles from the Special Issue that concentrate on the various open innovation perspectives for firms to achieve sustainability

Regulation architecture of open innovation under digital transformation: case study on telemedicine and for-profit-hospital

This research seeks to answer the following research question “What kind of regulation architecture can stimulate creative destruction and growth of two different types of new industries like telemedicine, and for-profit-hospital?” Online interview method was used to investigate the telemedicine industry and for-profit-hospitals at Daegu Gyeongbuk province in South Korea and Cardiff-Wales in the UK. Findings provided following grounded theories. First, the way to create a converted new industry is not deregulation but regulation conversion. Though, deregulation helps to expand the modern market, it could disturb the emergence and growth of new markets. Second, the regulation can be an essential policy method to create emerging new markets when there are enough (potential) suppliers owing to technological developments or the accumulation of a new workforce equipped with new technologies. According to the UK for-profit-hospitals, regulations for consumer protection and decreasing transaction costs or complexity in the new market could trigger market creation. Third, digital transformation has motivated open innovation dynamics in all industries. The expanded open innovation dynamics with digital transformation can promote, most of all, the appearance of converted new industries like telemedicine

Dynamics from open innovation to evolutionary change

We created conceptual models that people may use to analyze and forecast the dynamic effects of open innovation, which we applied to the smartphone sector using a model-based analysis approach. In addition, we built an open innovation simulation model for the smartphone sector. The dynamic model of open innovation linked logic and concepts relating to open innovation, complex adaptive systems, and evolutionary change. The model can be used to analyze the dynamic effects of open innovation strategies and open innovation simulation for the selection of future strategies.1

Sustainability Condition of Open Innovation: Dynamic Growth of Alibaba from SME to Large Enterprise

Research Question: Open innovation and the open business model exaggerate complexity (a transaction cost) in addition to the realization of emergence and its lock-in. Within a short period, Alibaba has become one of the global top e-commerce companies with several open innovation business models. Our research question was: How could Alibaba become a global top e-commerce company in China in such a short time? Research Method: We chose a deep interview method, participatory observation, and meta-analysis to answer this research question. Research Result: Alibaba has applied global, creative e-commerce business models through open innovation in a short time. In addition, it has overcome complexity-i.e., the cost of open innovation and the force that breaks down a company-through an open innovation-friendly culture. This is a Jack-Ma style consumer confidence and new Guanxi culture, a new and strong Chinese corporate culture. Alibaba has also undergone the expansion of its open business model feedback loop platform. This study investigated the expanded open business model feedback loop platform, the continuously strengthened open-innovation-friendly culture, and complexity, with the latter being the cost of open innovation, which was controlled by an open-innovation-friendly culture and open business model feedback loop. © 2020 by the authors. Licensee MDPI, Basel, Switzerland.1

Open Innovation and Serial Entrepreneurs

With the advent of the Fourth Industrial Revolution, the role of entrepreneurs has become more crucial than ever. As a result, an open innovation model is suggested here that can promote serial entrepreneurs by answering the following question: How does the serial entrepreneur in open innovation conditions continuously identify business opportunities? This question is answered through an in-depth case study of Medison from 1985 to 2016, as Medison is not only a representative Korean medical device company, but is also a representative example of serial entrepreneurship in Korea. First, we examined the diverse open innovation channels, such as spin-offs, venture investment, and joint venture, used by Medison before it was merged with Samsung. Second, we examined the open innovation serial entrepreneurs of Medison and then analyzed the direct serial entrepreneurs of Medison. Fourth, we built a causal loop model of Medison open innovation with emergence and complexity combined. Finally, a sustainable open innovation strategy and an approach to sustainable serial entrepreneurship was formulated. The foundation of this research is as follows. First, an open innovation strategy can be a strong motivator for serial entrepreneurs. Second, a balance between emergence and complexity is required to trigger sustainable serial entrepreneurs of open innovation. © 2019 by the authors.1

Collective Intelligence: An Emerging World in Open Innovation

Responding to the lack of empirical research on the effect of collective intelligence on open innovation in the fourth industrial revolution, we examined the relationship between collective intelligence and open innovation. Collective intelligence or crowd innovation not only produces creative ideas or inventions, but also moderates any firm to innovate inside-out, outside-in, or in a coupled manner. We asked the following research questions: Does collective intelligence (or crowd innovation) motivate open innovation? Is there any difference in the effect of collective intelligence on open innovation by industry? These research questions led to the following three hypotheses: (1) Collective intelligence increases the performance of a firm, (2) collective intelligence will moderate the effect of open innovation, and (3) differences exist between the automotive industry and the pharmaceutical industry in these two effects. To empirically examine these three hypotheses, we analyzed the registered patents of these two industries from 2000 to 2014 over a 15-year period. These automotive and pharmaceutical patents were registered in the B60 category and the A61K category of the Korea Patent office, respectively. Collective intelligence was measured by co-invention. We found differences in the effects of collective intelligence on open innovation between the two industries. In the automotive industry, collective intelligence not only directly increased the performance, but also indirectly moderated the open innovation effect. However, this was not the case for the pharmaceutical industry. © 2019 by the authors.1

Business Model, Open Innovation, and Sustainability in Car Sharing Industry—Comparing Three Economies

This paper discusses dynamics and differences of business models in the car-sharing industry and focuses on open innovation as the trigger of diverse business models among Uber in the U.S., DiDi Chuxing in China, and KakaoT in Korea. We seek to answer the following two questions: What creates the differences in the business models of the car-sharing industry? Do the differences in open innovation motivate the diversity of business models among Uber, DiDi Chuxing, and KakaoT? We incorporated participatory observation, interviews, and semi-structured questionnaire methods in our study. We used two-step participatory observation and interview methods, hence carrying out observation and interviews two times by different researchers with Uber drivers in the U.S., DiDi-Chuxing drivers in Beijing, and KakaoT taxi drivers in Korea to confirm the interview and participatory observation results. First, business models of the car-sharing firms Uber, DiDi-Chuxing, and KakaoT are not fixed but rather are dynamically changing. Second, business models of car-sharing firms are the result of interaction with government regulations, the taxi industry, public transportation, and the automotive car industry. Third, open innovation strategies of car-sharing firms determine the contents and dynamics of car-sharing business models, such as the revenue business model, responsibility business model, and system business model upon interaction with four agencies. © 2020 by the authors.1

How to Respond to the Fourth Industrial Revolution, or the Second Information Technology Revolution? Dynamic New Combinations between Technology, Market, and Society through Open Innovation

How can we respond to the Fourth Industrial Revolution in terms of technology?&rdqu

Open innovation of knowledge cities

Purpose: This research seeks to answer the basic question, “As a city evolves from an industrial city to a knowledge one, are its open innovation activities vitalized?” Design/methodology/approach: In this research, we compare the total number of patent applications, the number of joint applicants of each patent, and the ratio of patents jointly applied, in four Korean cities—Daegu, Kwangju, Cheonann total, top 10 % patent applicants group among total patent applicants, and the lower 70 % patent applicant group among total patent applicants. The research included 144,625 patents submitted to the Korea Patent Office from 1981 to 2010. Findings: As knowledge-based urbanization proceeds, the size of a knowledge city increases. The lowest 70 % of patent applicants (rather than the top 10 %) apply for more patents, and the breadth and depth of open innovation rises. Research limitations/implications (if applicable): This research is limited to mutual patent applications as a target of open innovation. In the future, additional research will need to be conducted on various open innovation channels such as patent citation, intellectual property right transfer, licensing, and M&A. Practical implications (if applicable): To maximize the beneficial characteristics of a knowledge city in a large city, the improvement of open innovation across the city is essential. Social implications (if applicable): If strengthening open innovation by SMEs or start-ups is set as a corporate strategy or a government policy, it will be a source of development of knowledge-based urbanization and continued economic development of a knowledge city, as well as of the total knowledge assets