Open Innovation in firms located in an intermediate technology developed country

Open Innovation is a flow of inputs and outputs of knowledge and technology which favours, at the firm level, the acceleration of the innovation process, as well as the establishment and penetration of firms in new markets. This type of innovation incorporates technological innovation from internal and external sources, as well as different ways to access markets. The empirical studies in the area reveal that there is a significant bias in favour of countries of technological frontier, such as the United States, Finland, the Netherlands, Germany or Sweden. The present study aims at covering this gap in literature by examining firms in a country of intermediate technology development – Portugal. Based on 70 innovative firms located in Portugal we found that open innovation is only partially diffused throughout these firms. In addition, open innovation is more widespread in terms of external absorption of knowledge/ technology rather than in terms of knowledge/technology transfer. This result may indicate lack of awareness about the economic potential of making available to third parties the technologies internally created. This may require a different approach to organization/management of R&D, in particular, and of innovation, in general.