A main purpose in engaging in open innovation is for MNEs to:
A)Adding rules to the R&D game to deter rivals.
B)Reduce dependence on collaborative research.
C) Counteract the diminishing returns of R&D in large firms.
D) None of the above.

Question

Quizplus · Accepted Answer

The main purpose of engaging in open innovation is to counteract the diminishing returns of R&D in large firms. Open innovation allows MNEs to access external sources of knowledge, such as universities, startups, and other businesses, to supplement their internal R&D efforts and tap into new and diverse ideas. By doing so, they can reduce the risk of investing in their own R&D projects that may result in no payoff or benefit over time. This is especially important for large firms that may struggle to maintain their innovation capabilities due to bureaucracy, complacency or other factors. Open innovation enables them to stay relevant and competitive in today's fast-paced business environment. Options A and B are incorrect as they do not represent the main motivation for open innovation. Option D is also incorrect as there is a clear and specific purpose for engaging in open innovation.

A Main Purpose in Engaging in Open Innovation Is for MNEs