Asian Journal of Innovation and Policy

Asian Society for Innovation and Policy (아시아기술혁신학회)
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Co-creation and Personalization as Incentive Mechanisms of Utilizing External Innovation Sources: Which Performs Better?

  • Lee, Sangjic (Department of Technology Management for Innovation, The University of Tokyo) ;
  • Nishiyama, Kohei (Research Center for Advanced Science and Technology, The University of Tokyo) ;
  • Kimita, Koji (Department of Technology Management for Innovation, The University of Tokyo) ;
  • Nishino, Nariaki (Department of Technology Management for Innovation, The University of Tokyo)
  • Received : 2021.08.23
  • Accepted : 2021.12.06
  • Published : 2021.12.31
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Abstract

Utilizing outside knowledge for innovation is an important task for companies in the competitive economy. Due to the rapid advance in the internet communication technology, the number and quality of innovation sourcing methods are increasing. We select co-creation, personalization and in-house R&D as the representative forms of innovation sourcing and suggest a game theory model that enables the comparative analysis between them. The decision and surplus outcome of the innovation mechanisms are compared under various settings of the input parameters of the model. The stakeholders voluntarily participate into all mechanisms when the product price is moderately high and the participation cost is low, while co-creation is the only feasible one when the product quality is niche. When the participation cost is relatively high, personalization outperforms co-creation.

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