Business Model Design Compass: Open Innovation Funnel to Schumpeterian New Combination Business Model Developing Circle

238 Pages·2017·5.35 MB·English

Management for Professionals
JinHyo Joseph Yun
Business
Model Design
Compass
Open Innovation Funnel to
Schumpeterian New Combination
Business Model Developing Circle
Management for Professionals
More information about this series at http://www.springer.com/series/10101
JinHyo Joseph Yun
Business Model Design
Compass
Open Innovation Funnel to
Schumpeterian New Combination
Business Model Developing Circle
JinHyo Joseph Yun
Tenured Researcher of DGIST
and Professor of Open Innovation
Academy of SOItmC
Daegu, Korea, Republic of (South Korea)
ISSN 2192-8096 ISSN 2192-810X (electronic)
Management for Professionals
ISBN 978-981-10-4126-6 ISBN 978-981-10-4128-0 (eBook)
DOI 10.1007/978-981-10-4128-0
Library of Congress Control Number: 2017941317
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Preface
How do we conquer the growth limits of a global capitalist economy?
I have studied open innovation and open business model to answer this question
nearly for 10 years. The creative three books such as Open Innovation (2003), Open
Business Models (2006), and Open Services Innovation (2011) from Henry
Chesbrough who is the founder of open innovation gave me big implications.
I realized the requirement of a global research community and journal to answer
my research question in 2010. So I prepared a research community and a research
journal to answer my only one research question for 5 years with more than 1000
professors and researchers from 35 countries.
At first, I made the Journal of Open Innovation: Technology, Market, and
Complexity (JOItmC) with nearly 100 professors and researchers from 25 countries
in 2014. Please visit www.jopeninnovation.com to see several great papers from this
open access journal. And the Society of Open Innovation: Technology, Market, and
Complexity (SOItmC) was established in 2015 by 500 professors and researchers
from 30 countries. I hosted the SOItmC and KCWS 2015 conference at DGIST on
June 14–18, 2015, with the theme “Open Innovation, Knowledge City and Creative
Economy.” The SOItmC and CSCOM 2016 conference was hosted by San Jose
State University on May 31–June 3, 2016, with 127 great papers under the theme
“Open Innovation of Start-Ups and Firms in Value Chain.” Please visit www.openin-
novationtmc.org to see details of conferences.
I prepared this book to answer to the requirements for a guidance to connect logi-
cally and practically between open innovation and business model from several
professors, researchers, and firms’ CEOs who joined at SOItmC and JOItmC.
First, I thank a lot the ex-president of DGIST, Mr. President, Dr. SungChul
Shin. He gave chances for me to research deeply on open innovation and business
model. Second, I thank a lot honor professor Henry Chesbrough. He gave me sev-
eral teachings directly and indirectly for me to develop my own research frame-
works for open innovation and open business model. Third, I thank a lot all expanded
editor board members of JOItmC and all members of SOItmC including honor pro-
fessor Philip Cooke from Bergen University College, Norway; honor professor
Fumio Kodama, University of Tokyo, Japan; honor professor Fred Phillips, Stony
Brook University, USA; honor professor Venni Krishna, Jawaharlal Nehru
University, India; honor professor Francisco Javier Carrillo Gamboa, Tecnológico
de Monterrey, Mexico; honor professor Anil K. Gupta, Indian Institute of
v
vi Preface
Management, India; honor professor Keld Laursen, Copenhagen Business School,
Denmark; honor professor Keun Lee, Seoul National University, Korea; honor pro-
fessor KongRae Lee, DGIST, Korea; honor professor Loet Leydesdorff, University
of Amsterdam, Netherlands; and honor professor Ulrich Witt, Max Planck Institute
of Economics, Germany.
February 27, 2017 JinHyo Joseph Yun
Acknowledgment
This book was supported by the DGIST R&D Program of the Ministry of Science,
ICT and Future Planning (16-IT).
vii
Contents
Part I Introduction
1 Introduction ............................................................................................. 3
1.1 The Requirements and Method to Vitalize Open Innovation ......... 4
1.1.1 Why Do We Need Open Innovation? ............................... 4
1.1.2 How Can We Vitalize Open Innovation
at the National Level or Higher? ...................................... 5
1.2 L ocus of Open Innovation .............................................................. 6
1.3 C oncrete Existence of Open Innovation ........................................ 8
1.3.1 Diverse Measures of Open Innovation ............................. 8
1.3.2 New Measure of Open Innovation ................................... 10
References ................................................................................................. 12
Part II Open Innovation in an Economic System and the National
Innovation System
2 Dynamics of the Open Innovation Economy System ........................... 17
2.1 Introduction .................................................................................... 18
2.1.1 Capitalism Has Arrived at Its Growth Limits ................... 18
2.1.2 How Do We Conquer the Growth Limits
of Capitalism? .................................................................. 19
2.2 Reasons Behind the Growth Limits of Capitalism: Findings
from the Literature ......................................................................... 19
2.2.1 D iscussion in the Nineteenth Century
and Early Twentieth Century ............................................ 20
2.2.2 Discussion in the Late Twentieth Century
and Early Twenty-first Century ........................................ 21
2.2.3 Discussion of the Growth Limits of Capitalism
in Korea ............................................................................ 22
2.3 Economy Model to Conquer the Growth Limit of Capitalism ...... 24
2.3.1 O pen Innovation Economic System with
a Good Balance Between Three Subeconomies ............... 24
2.3.2 Three Interactive Relationships in Open Innovation
Economy System .............................................................. 26
ix
x Contents
2.3.3 Theoretical Validation of the Dynamics of
Open Innovation Economy System .................................. 29
2.4 S imulation of the Dynamics of Open Innovation
Economy System ........................................................................... 31
2.4.1 Natural Life Cycle ............................................................ 31
2.4.2 Low-Speed and High-Speed Cases .................................. 32
2.5 Schumpeterian Dynamics .............................................................. 36
2.5.1 Schumpeterian Dynamics of Open Innovation
Economy System .............................................................. 36
2.5.2 N ew Combinations as the Core in Schumpeterian
Dynamics.......................................................................... 37
2.5.3 F our Agencies in Schumpeterian Dynamics .................... 38
References ................................................................................................. 38
3 E conomic Effects of Open Innovation ................................................... 41
3.1 Introduction .................................................................................... 41
3.2 Phenomena of Open Innovation ..................................................... 43
3.2.1 Long-Tailed Phenomena .................................................. 43
3.2.2 A pp Store Phenomena ...................................................... 44
3.3 Economic Effects of Open Innovation ........................................... 45
3.3.1 Marginal Product Increasing ............................................ 45
3.3.2 Economy of Diversity ...................................................... 46
3.3.3 X -Efficiency Enhancement .............................................. 46
References ................................................................................................. 47
4 Open Innovation Policy in National Innovation System ..................... 49
4.1 Introduction .................................................................................... 50
4.2 O pen Innovation Policy .................................................................. 50
4.3 National Innovation System Dynamic Model of Open
Innovation Policy ........................................................................... 52
4.3.1 Model Building ................................................................ 52
4.3.2 Different Levels of Open Innovation Policy .................... 53
4.4 Scope of Open Innovation Policy .................................................. 55
4.5 Issues of Open Innovation Policies ................................................ 56
4.5.1 O pen Innovation as a Democratizing Innovation ............. 56
4.5.2 O pen Innovation Is “Very Unique” .................................. 57
4.5.3 O pen Innovation Needs Enough R&D Investment .......... 57
4.6 Conclusion ..................................................................................... 58
References ................................................................................................. 59
Part III Open Innovation Strategy of Firm
5 Concept, Structures, and Decision Factors of Open Innovation ........ 63
5.1 Emergence of Open Innovation ..................................................... 64
5.2 The Structure of Open Innovation ................................................. 66
5.3 Factors of Open Innovation of SMEs ............................................. 67