Master Thesis Defense - July 21, 2015: The Impact of Applying Open Innovation Practices on Performance of Firms in Nantechnology Industry

Arman Sadreddin

Tuesday, July 21, 2015 at 1:30 p.m.
Room EV003.309

You are invited to attend the following M.A.Sc. (Information Systems Security) thesis examination.

Examining Committee

Dr. R. Glitho, Chair
Dr. A. Schiffauerova, Supervisor
Dr. A. Awasthi, CIISE Examiner
Dr. M. Harsh, External Examiner (CES)

Abstract

Firms which adopt Open Innovation model in the advancement of their knowledge and technology tend to use external as well as internal ideas and external as well as internal paths to market.  They create and capture value by systematically exploring a wide range of various internal and external sources for innovative opportunities.  Since the Open Innovation model offers multiple benefits such as decreased cost of R&D conducted by the firm or increased value of innovation, its popularity has been increasing.  On the other hand, implementing the model of Open Innovation is naturally associated with a number of risks and challenges, such as revealing intellectual property and losing a firm's competitive advantage and satisfaction level, which may deter some firms from its implementation.

The purpose of this research is hence to shed some light on this divergence of opinions and to study in depth the behaviour of Open Innovation systems.  This work has two main objectives.  First is to investigate the application of open innovation business model in nanotechnology sector, both in Canada and worldwide and to compare it from different aspects.  The second objective is to analyze the impact of the use of Open Innovation practices on the technological and scientific performance of nanotechnology firms.  The methodology involves an extensive online survey run in several countries whose results were analyzed through descriptive and inferential statistical analyses.  Moreoever, based on the gathered data a simulation model was created and several scenarios tested.  The findings revealed that it is mostly large companies which implement open innovation practices, while the level of implementation is much lower among the small and medium enterprises.

In Canada, these types of practices are more common in Quebec than in other provinces.  Even though European countries are known to be pioneers in open innovation business model, the resulsts revealed a close similarity in the implementation pattern of open innovation practices between Canada and Europe.  The results of inferential statistical analysis suggest that applying both outside-in and inside-out pecuniary Open Innovation practices together has a significant effect on the performance of firms in terms of an increase in technological and scientific outcomes (measured by the number of patents and articles).  However, if only one type of pecuniary Open Innovation practice (either outside-in or inside-out type) is applied then there is no such positive impact detected.  The simulation model has considered four different scenarios and confirmed these findings as well.  It is thus suggested to embrace the Open Innovation model for its entirety instead of focusing on the implementation of isolated practices.