What is Motivating Spillovers

Innovation trends are a highly competitive environment, and have been changed and companies are moving towards the open innovation model rather than to follow close or in a traditional innovation model. Therefore, this chapter demonstrated various determinants of open innovation. For this purpose, a survey was carried out among Malaysian small and medium-sized enterprises (SMEs). The outcomes of the survey highlighted that, the success of open innovation model is based on five major elements, namely, 1) motivating spillovers, 2) incorporation of external knowledge, 3) intellectual property management, 4) maximization of internal innovation, and 5) financial constraints. These five elements are the major challenges for companies while adopting open innovation model. More specifically, the phenomenon of coopetition-based open-innovation is emerging rapidly among the companies. Nowadays, by following the open innovation activities, competitors are collaborating with each other rather than to compete.