Journal Article

Endogenous growth of open collaborative innovation communities: a supply-side perspective

Paolo E Giordani, Francesco Rullani and Lorenzo Zirulia

in Industrial and Corporate Change

Volume 27, issue 4, pages 745-762
Published in print August 2018 | ISSN: 0960-6491
Published online March 2018 | e-ISSN: 1464-3650 | DOI: https://dx.doi.org/10.1093/icc/dty004
Endogenous growth of open collaborative innovation communities: a supply-side perspective

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Abstract

This article analyzes the conditions under which open collaborative innovation communities can be generated and are able to grow and prosper in the long run. We build a formal model of the interaction between such communities and the alternative institutional setting based on intellectual property rights that we call Technology. The model accounts for both the communitarian social process taking place inside the community and for the presence of spillovers both across and within each institution. We prove that communities grow endogenously above a certain size threshold, and that such growth depends on supply-side mechanisms centered on the developers’ social motivations and interactions. In a comparative statics analysis, we show that the community’s innovative performance rests not only on its own characteristics (strength of social motivations and/or of protection of the community-produced knowledge) but also on factors outside its scope, namely, the institutional characteristics of Technology. We discuss the managerial and policy implications of our findings.

Keywords: O31; L86; L88

Journal Article.  10385 words.  Illustrated.

Subjects: Technological Change; Research and Development ; Services

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