The literature on “open innovation” so far focuses almost exclusively
on strategic issues. In this largely conceptual paper we propose
behavioral foundations for knowledge exchange and knowledge
sharing to address this gap in the literature. Innovation and
knowledge development that result from knowledge transfer, is an
uncertain and cumulative process that typically involves a number
of parties. Knowledge transfer between people and firms has been
fruitfully studied from a structural or network perspective. The social
network literature however, faces an “action problem”. Focusing on
structural elements such as an agent’s position in a network and the
types of relations entertained cannot explain why actors actually
do share knowledge. The exchange of knowledge is elusive and is a
discretionary act for the people involved, certainly in the case of open
innovation (OI). It is argued here that social network analysis is to be
complemented by the concept of gift exchange, drawing on social
exchange literature. Gift exchange – following Mauss’ dictum to “give,
receive and reciprocate”– establishes obligations between people
especially under circumstances of ambiguity, which explain why and
how knowledge exchange relations are established, persist, and may
also end. Relationships in a social network and the social capital that
inheres in these cannot be drawn on at will to exchange knowledge.
These obligations established by gift exchange between individuals
who share a connection explain why agents exchange knowledge
with each other even in the absence of markets or hierarchy