R&D outsourcing in an innovation-driven supply chain

Kyoung Kuk Kim, Michael K. Lim

Research output: Contribution to journalArticlepeer-review

Abstract

We consider R&D outsourcing in an innovation-driven supply chain. We find that there exists a threshold in the firm's R&D cost above which it prefers to outsource via hosting a contest. When designing an R&D contest, we find that the firm benefits from inviting as many suppliers as possible if the R&D participation barrier is low. Otherwise, the firm may prefer to offer entry subsidies or impose fees to purposefully manipulate the contest structure.

Original languageEnglish (US)
Pages (from-to)20-25
Number of pages6
JournalOperations Research Letters
Volume43
Issue number1
DOIs
StatePublished - Jan 2015

Keywords

  • Entry intervention
  • Innovation
  • R&D contest
  • R&D outsourcing

ASJC Scopus subject areas

  • Software
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering
  • Applied Mathematics

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