Large-scale Open Innovation: Open Source vs. Patent Pools

The traditional view of innovation, which implies that companies innovate on their own, has been recently challenged by the 'open' innovation concept promoting the use of external knowledge. Collaboration between firms has always existed in one way or another, however, large-scale open innovation is now the next step for many companies. This article conducts a comparative analysis of the two largest open innovation structures: patent pools and open source. The issues of financial and non-financial benefits, appropriability, standards, cooperation, risks and feasibility are, in turn, discussed for each of the structures. Finally, a synthesis of the results is established and recommendations in regard to the adoption of these structures are given.