The explosion of connectivity by means of the Internet and the emergence of open standards widen the spectrum of knowledge pooling for innovation and expand the risks of rent sharing. Indeed we still do not have clear answers on how to organize under different conditions to both create and capture the rents coming from an innovation. By building on both existing literature on distributed innovation and a deep multiple-case analysis, in this paper we gain two results. We first develop a taxonomy of four emerging modes of value creation in the context of distributed innovation. We then analytically discuss the systems of incentives that help firms to extract value from the different models, providing managerial guidance for value creation and capture in the networked world.
Sharing the pie of ditributed innovation: towards a contingent model
PRANDELLI, EMANUELA;SAWHNEY, MOHANBIR;VERONA, GIANMARIO
2006
Abstract
The explosion of connectivity by means of the Internet and the emergence of open standards widen the spectrum of knowledge pooling for innovation and expand the risks of rent sharing. Indeed we still do not have clear answers on how to organize under different conditions to both create and capture the rents coming from an innovation. By building on both existing literature on distributed innovation and a deep multiple-case analysis, in this paper we gain two results. We first develop a taxonomy of four emerging modes of value creation in the context of distributed innovation. We then analytically discuss the systems of incentives that help firms to extract value from the different models, providing managerial guidance for value creation and capture in the networked world.
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