R&D outsourcing in an innovation-driven supply chain

Kyoung Kuk Kim; Michael K. Lim

doi:10.1016/j.orl.2014.10.005

R&D outsourcing in an innovation-driven supply chain

Kyoung Kuk Kim
, Michael K. Lim

Business Administration

Research output: Contribution to journal › Article › peer-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 language	English (US)
Pages (from-to)	20-25
Number of pages	6
Journal	Operations Research Letters
Volume	43
Issue number	1
DOIs	https://doi.org/10.1016/j.orl.2014.10.005
State	Published - 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

Online availability

10.1016/j.orl.2014.10.005

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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.",

keywords = "Entry intervention, Innovation, R\&D contest, R\&D outsourcing",

author = "Kim, \{Kyoung Kuk\} and Lim, \{Michael K.\}",

note = "The authors would like to thank Prof. H. Dharma Kwon for many fruitful discussions at the early stage of this work. Kim{\textquoteright}s work was supported by the Basic Science Research Program through the National Research Foundation of Korea (NRF) funded by the Ministry of Education, Science and Technology (MEST, No. 2011-0007651 ).",

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AB - 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.

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R&D outsourcing in an innovation-driven supply chain

Abstract

Keywords

ASJC Scopus subject areas

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