Open innovation in the automotive industry

Automotive Original Equipment Manufacturers (OEM) have historically invested in their own research and development (R&D) to boost their innovativeness. Because of an increasing innovation and cost pressure, the automotive industry needs to look outside their own boundaries to escape from this productivity dilemma. While there is a tendency to look outside for external sources to increase the innovativeness, there are hardly any external paths to market outside the current business yet. Our study shows that Open Innovation proves to be more adequate in the attempt to achieve a better R&D productivity for companies in the automotive industry than a closed innovation model.