Excellent paper from Harvard on the paradigm shift from closed to open innovation. Points made include the following. Full text here.
- When it is technologically feasible, the transition from closed producer innovation or single user innovation to open single user or open collaborative innovation is desirable in terms of social welfare and is worthy of support by policymakers.
- Free dissemination of innovation designs is associated with the open model. Open innovation generates innovation without exclusivity or monopoly, and so should improve social welfare, other things being equal.
- Intellectual property rights grants can be used as the basis for licenses that help keep innovation open as well as closed.
- Policymakers should seek out and eliminate points of conflict between present intellectual property policies designed to support closed innovation that at the same time inadvertently interfere with open innovation.
- As design costs fall, many more innovations will originate with single users.
- Open collaborative innovation projects thrive on low communication costs.