Balancing Open and Closed Innovation - Strategic Considerations in the Development of New Technologies

Abstract

In an increasingly globalized and competitive landscape, organizations face growing pressure to innovate rapidly while maintaining control over intellectual property and strategic assets. This thesis explores how companies strategically balance open and closed innovation models to develop new technologies. Through a qualitative multiple-case study of Swedish firms in the manufacturing, industrial solutions, and technology sectors, the study investigates how contextual factors such as industry dynamics, organizational capabilities, and project specific considerations influence strategic innovation decisions. Drawing on semi-structured interviews with innovation and IP professionals, as well as expert insights, the findings reveal that no firm operates exclusively within a single innovation model. Instead, organizations adopt hybrid approaches and adjust their openness depending on the nature of the innovation, collaboration potential, and IP sensitivity. The research contributes to the field of innovation management by integrating theoretical frameworks such as the innovation funnel, resource-based view, and dynamic capabilities perspective. It provides practical insights for managers that demand both adaptability and protection. Ultimately, the study emphasizes the need for dynamic and situational decision making to effectively balance innovation openness and control.