Managing the business risks of open innovation

Abstract

The article considers the business risks associated with open innovation. When technology firm International Business Machines (IBM) refused to enforce patents that were violated by the Linux open-source operating system, it helped create an alliance of firms with a vested interest in defending open-source software from legal attack. Similarly, whether other industries give rise to spheres in which competition takes place in open, intellectual-property-free spaces depends on various factors including the existence in a space of companies with proprietary solutions and the presence of technologies so complex they are vulnerable to inadvertent patent infringement.

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