Open Innovation practices on firm performance: evidences from biotech industry

Abstract

The research presented in this paper explores the effect of Open Innovation (OI) on firm performance in the biotech-pharma industry sector. Specifically, although existing researches on OI effectiveness have separately investigated the effect of OI practices on innovation and financial performance, this study evaluates the concurrent effect of all those practices on both such performance dimensions in a single framework. We claim the importance for a manager to explore concurrently the influence of specific OI practices both on innovation and economic-financial performance. We empirically test our framework on a sample of 120 companies listed on NASDAQ Biotechnology Index.