Open innovation strategy in the process of technological capability development: Conceptual framework aspect

How to improve technological capability and generate core competence is one of most critical issues faced by companies in a serious competitive business world, especially those in developing countries. The theory of open innovation provides a new model to make the strategies of technological capability generation without a well-established capability base, while it requires a company to improve its capabilities on alliance strategies and alliance management. Based on theoretical and practical research, this paper argues that open innovation strategy contributes to the development of technological capability. External technology sourcing, particularly the alliances, plays a critical role in improving technological capability of companies. The process of technological capability development is a process to construct and manage open alliances. Due to its changing existed capabilities and available internal and external resources, a company has to make distinguish strategies to manage its external technology sourcing in its development stages. This research provides a new research framework on development of technological capability in emerging countries based on open innovation.