Transformative Direction of R & D into Neo Open Innovation

Abstract

The advancement of the digital economy has transformed the concept of growth. Advanced economies have confronted a dilemma between increasing inputs and declining output. Contrary to traditional expectations, excessive increases in inputs have resulted in declining productivity. A solution to this dilemma can only be expected if the vigor of Soft Innovation Resources (SIRs), which lead to neo open innovation in the digital economy, is harnessed. This paper attempts to demonstrate this hypothetical view by following previous analyses of the authors and using a techno-economic approach. An empirical analysis of the development of 500 global information and communication technology firms revealed a dynamism that led to a bipolar vicious cycle between increasing input and improving productivity. Thus, it was assumed that the neo open innovation would harness the vigor of SIRs and maintain a virtuous cycle between input and output increases was postulated. These findings lead to insightful proposals for a new R &D concept and subsequent neo open innovation in the digital economy. Thus, a broadly applicable practical approach to assessing R &D investment in neo open innovation can be provided.