Cooperation, Coopetition and Innovation

3Cooperation, Open Innovation and Property Rights

3.1. Introduction

The theory of property rights developed by [ALC 65] and [DEM 67] aims to explore the relationships between property and contracts. Property rights are fundamental rules that constitute the basis for production, exchange and distribution [DAV 71].

The theory of property rights is at the heart of the agency theory (see Chapter 4), but it is often difficult to clearly distinguish between both theories. This is because the contractual conception of the firm predominates in both analyses. On the other hand, the agency theory largely alludes to property rights because their structure plays a fundamental role in both individual decisions and contracts.

In this chapter, the stress is placed on intellectual property, and patents in particular (section 3.2). Section 3.3 introduces the main teachings of the property rights theory. Cooperative behavior is analyzed, in terms of both “traditional” inter-firm alliances (section 3.4) and open innovation practices, which have refreshed the debate on intellectual property (section 3.5).

Inter-firm alliances are frequently found in very innovating sectors, chiefly in a context of digital transformation. Emerging technologies in the market are not systematically and totally protected by property rights. These can no longer be adequate, either because they are too old or because they are difficult to establish and are therefore insufficiently precise; this encourages innovating ...