f01d1b6e_ns__Information__and_Decisions__Title
[Date] April 6, 2012 [Presenter] Mehmet Fazil Paç [Title] 
Adoption of Technological Innovation in Competitive Network Markets We compare two approaches widely used for procuring innovation from external sources: open innovation tournaments and request for proposals (RFP). Under both approaches, a firm procuring innovation (seeker) awards a fixed, pre-announced amount to a single winner of a procurement contest selected among multiple contest participants (solvers). In an innovation tournament all competing solvers incur development costs and deliver finished products to the seeker, whereas in an RFP only the solver with the winning bid incurs development costs and delivers a product. Our analysis shows that high potential variation in the quality of delivered products and large solver pools both favor tournaments, while high return-on-effort and high variation in solver ability favors RFPs.
Seminars / Conferences - Operations, Information, and Decisions
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