Policies for Promoting Open Innovation

Rapid technological changes and profuse innovations are the result of moving from isolated efforts to collaboration for creation of new sources of value among firms and governments. Such approach toward innovation has been known as open innovation in the literature and many researchers have studied its different aspects. In order to introduce this concept and investigate how policies could support it, this study tries to present the concept, its history and modes and policy tools to promote it among firms. Based on the literature review, a 3×3 matrix with two dimensions including Innovation Direction (Inbound, Outbound, and Coupled) and Knowledge process (Creation, Diffusion and Exploitation) is proposed in order to categorize the policy tools. Finally, a case of open innovation affairs among Iranian biopharmaceutical firms is studied to recognize the gaps in public policies to boost open innovation in the industry.