Open innovation and new issues in R&D organization and personnel management

Abstract

The steady growth of R&D costs and the increasingly widespread dissemination of information and communication technology over the past decade have resulted in the affirmation of the paradigm of open innovation, which consists in the continual expansion of access to sources of technological innovation outside the firm itself. Industrial companies are, in fact, turning more frequently to collaboration with university departments and other public and private research centers, and there is a notable increase in agreements regarding technological cooperation and the exchange of know-how between companies. In addition, recourse to highly specialized small research companies is on the rise. This is common, for example in the pharmaceutical sector and, more generally, in the area of biotechnological research. Furthermore, we are witnessing the development of the new role of innovation broker. These factors alter the traditional profile of company R&D structures, within which the role of researchers and technologists often changes. In particular, matrix and network organizational models are on the increase, and the professional figures of ‘integrators of knowledge and expertise’ (T-men) are assuming major importance at the expense of traditional scientists. As a consequence, the model for training and managing scientific personnel tends to change. This model, as it moves away from the prevailing pattern adopted by firms in Anglophone countries, is continually drawing closer, even from a cultural standpoint, to the R&D management approach found in the Japanese and German companies. The aim of this article is to investigate how the adoption of open innovation has changed the organizational structures of R&D and altered the methods used in managing its personnel. The results of the study are based on the analysis of four case studies of Italian multinational firms operating in the pharmaceutical, food, specialty chemical, and aerospace industries.