Role of open innovation and patents on strategic decision making

The fourth industrial revolution, as it is popularly known, is transforming the overall ecosystem of business and is swiftly affecting the structure of organizations with respect to their working strategy. It is leading to enhanced collaboration and cross-application of center-specific fundamentals across various industries. As a result, collaboration and cross-licensing of technologies have become the norm rather than an exception. Open innovation, therefore, plays a critical role in various horizontal applications of industry-specific concepts. As a result, choices such as "keep or sell" or "make or buy" research and development (R&D) supplies have become extremely critical and significant. Therefore, patent-based research is required as an enabling tool for assisting research on an open innovation-based approach. This article projects an in-depth review of the research articles related to various aspects of open innovation and patents and their overall impact on firm performance. This article also suggests an open innovation model that cumulates the role of patents and institutional participation with a focus on firm performance. The impact of open innovation on firm performance is evaluated with respect to variables on market positioning, R&D capacity building with respect to technology lifecycle, the impact of intellectual property, for instance, the existence of valid patents and know-how, and the process of acquisition of technologies by such organizations.