THE IMPACT OF OPEN INNOVATION ON R&D COSTS

Abstract

In today's conditions, where innovation has become the primary competitive tool for businesses, an increasing number of businesses turn to R&D and innovation and allocate resources. Among the most important questions that are sought to be answered day by day is the efficiency of the resources allocated to R&D and innovation, the development in R&D and innovation costs, and how these costs affect the company's income and profits.

In this framework, after explaining the R&D costs and open innovation from the perspective of cost management, the place and importance of open innovation in R&D processes are evaluated and the benefits and risks it will provide are included. After evaluating the possible effects of open innovation on the costs of R&D processes, the expected effects of successful R&D cooperation on the innovation activities of companies are discussed in different studies. The findings obtained from the studies indicate that open innovation can provide cost efficiency by reducing personnel expenses in R&D processes, and thus R&D costs can be reduced by dividing them among stakeholders. However, the increase in the number of stakeholders and the time required to manage the connections to be established and the efficiency in labor costs will be decisive at this point, therefore it is considered that the use of technology will have a significant impact.