Forecasting economic performance of implemented innovation openness

Abstract

The early stage of open innovation diffusion also hinders the use of traditional research methods in business economics. A suitable research method though relatively new in business management research is agent-based modeled simulations (ABMS). The aim of the paper is therefore also to develop an open innovation ABMS to explore the relative effects of innovation openness and initial capability endowment on firm innovation economics in a competitive context. In this respect the ABMS is applied as a data generating methodology of organizational behavior and industry dynamics. The ABMS acts as a combination of digital role play and experimental design. It is found that design and use of ABMS contribute to enlargement and testing of the usefulness and applicability of ABMS in social science.