Public funds and internal innovation goals as drivers of formal and informal open innovation practices

Abstract

Purpose The purpose of this paper is to analyse a firm’s internal and external drivers of formal and informal open innovation (OI) practices. To enrich the analysis and to obtain more robust results, the authors checked the study’s hypotheses using samples from two European regions, Navarre (Spain), classified an innovator follower, and Noord-Brabant (Netherlands), an innovator leader. Design/methodology/approach The sample selected includes manufacturing and service firms that completed the Community Innovation Survey for the year 2008 in both regions. The final sample had 1,288 observations from Navarre and 623 observations from Noord-Brabant. The authors consider two OI dimensions, breadth of information sources for informal OI practices and breadth of cooperation agreement for formal OI practices. Finally, the estimates were performed by means of a negative binomial regression. Findings Results indicate that for the internal drivers, product-related motives to innovate and in-house R&D intensity are strong drivers for both formal and informal OI engagement in general, while the influence of process- and environmental-related motives are context dependence. Originality/value This study distinguishes between formal (i.e. cooperation activities) and informal (i.e. external sources of information used for new ideas) inbound OI practices, while most of the literature has focussed on one single type of OI practice. The use of two samples coming from two different European regions allows observe whether the adoption motives of the OI practices are robust independently from the firms’ location or if they vary across regions owing to context dependence.