Challenges in open innovation for ICT companies in technology development zones

Open innovation that is known as the use of purposive inflows and outflows of knowledge with a view for accelerating firms' own internal innovation, and expanding the markets through external use of innovation, respectively is a very important window of opportunity for companies that are obliged to improve their innovativeness continuously due to intense competition environment. On the other hand, technology development zones are the platforms that act as an intermediary between the technology developer and technology diffuser to create value through transferring inventions and know-how from the university and research institution labs to the markets. These zones enable technology start-ups innovate and survive. Referring to their collaborative and networking nature, technology development zones have the potential to be connectors for open innovation across the universities, research Labs, start-ups, SMEs and large companies. However, to create and protect their technological know-how against larger and more competitive firms, start-up companies and SMEs in university based technology development zones may have the intention to keep their innovation systems closed and prefer to stay within the clusters of their collaboration network. This orientation to closed approaches prevents them from using technology development zones' eco-system and knowledge-sharing with similar companies as a leverage for growth. In this context, to address the obstacles and resources of open innovation for start-up companies and SMEs in technology development zones, this study aims to explore the perceptions of companies in technology development zones on open innovation. By conducting a survey among 98 information communication technology developer companies in major university technology development zones in Turkey, current open innovation practices and factors that act as obstacles for open innovation for these companies are searched. Types, scales, structures, shareholder types and experience of companies are also explored for their impacts on the orientation towards open innovation. Findings reveal that the IT companies in university based technology development zones do not utilize open innovation sufficiently, but they have intended to. Main constraints of companies in adapting open innovation practices are concluded as the lack of resources, while idea management and customer demand do not constitute critical constraints. However, they view import of technologies by inbound open innovation as a barrier. Customer immersion, lead users, collaboration and partly innovation intermediaries, innovation networks and platforming are among commonly practiced tools. However, because some of them strictly reject idea competitions, IP in-licensing and tech-out licensing, it is concluded that the IT companies in technology development zones are in need of improving their a practical understanding about open innovation.