6. Granstrand, O. and Holgersson, M. (2014), ‘The challenge of closing open innovation.pdf Flashcards
(14 cards)
What is the IP disassembly problem in open innovation?
It’s the challenge of fairly separating and assigning intellectual property rights (IPRs) when an open innovation project ends.
Example: Like trying to divide co-authored chapters fairly when two authors cancel their book project.
What does “closing open innovation” mean?
It means reducing reliance on external partners, either by ending a whole open innovation strategy or terminating a specific project.
Example: A company that stops using outside startups and brings all R&D back in-house.
What are background, foreground, sideground, and postground knowledge?
Background: Existing knowledge brought into a project.
Foreground: New knowledge created during the project.
Sideground: Knowledge created by a partner outside the project during its course.
Postground: Knowledge developed after the project ends.
Example: A baking recipe you had before (background), one created together (foreground), one you made at home during (sideground), and a spin-off recipe you made later (postground).
Why is managing sideground and postground knowledge difficult?
Because it’s hard to track, not always shared, and can be used to gain unfair advantage or exit deals prematurely.
Example: A partner secretly invents a cheaper version of a joint product and uses it solo.
What are grant-back, assign-back, and grant-forward clauses in licensing contracts?
Grant-back: Licensee must license improvements back to the licensor.
Assign-back: Licensee must transfer ownership of improvements.
Grant-forward: Licensor must license future improvements to the licensee.
Example: Like agreeing to share any improvements to a recipe even after you stop working together.
What is a change-of-control clause and why is it used?
A clause allowing a licensor to end the agreement if the licensee is bought or changes ownership.
Example: If your business partner sells their share to a competitor, you can back out of the deal.
What makes IP disassembly especially challenging in coupled open innovation?
High integration of resources across firms makes it hard to untangle contributions fairly.
Example: It’s like trying to unmix ingredients after baking a cake together.
What strategies can help reduce IP disassembly conflicts?
Clear upfront contracts, licensing terms for future knowledge, and fairness in sharing improvements and risks.
Example: Agreeing in advance who keeps the dog, the couch, and the Netflix account in a breakup.
What is the IP reassembly process?
A strategy to use disassembled IP from past projects as background for future ones, building a stronger knowledge base over time.
Example: Like using leftover parts from one Lego set to start building a new, better one.
Why is joint ownership of IP often discouraged?
Because in many jurisdictions, any owner can license the IP without the other’s permission, leading to loss of control.
Example: If both you and your friend own a song, they might sell it to an ad agency without telling you.
What’s the role of FRAND terms in preventing IP disputes?
They set fair, reasonable, and non-discriminatory licensing rules to simplify negotiations and reduce unfair advantage.
Example: Like agreeing on fair rent before you move in with a roommate to avoid fights later.
Why is contingency contracting important in open innovation?
Because not all future events can be predicted, contracts need flexible terms to handle unexpected situations.
Example: Including a rain plan in your outdoor wedding contract.
How can contractual clauses become overengineered?
Overly complex contracts may overwhelm or confuse teams, creating more issues than they solve.
Example: Like building a rocket to toast bread—unnecessarily complicated.
What’s the most important takeaway for managing open innovation IP?
Plan for both beginning and end of collaboration: secure rights, foresee disassembly, and keep relationships strong.
Example: Like planning not just the party, but also how to clean up after.
