The influence of open and closed innovation practices on economic performance: empirical evidence from Indian biotechnology industry

Purpose: The paper aims to examine the influence of closed and open innovation practices on economic performance. This papert also examines the mediating roles of innovation performance and firm performance. The study uses innovation theory based on knowledge management for theoretical support. Design/methodology/approach: The methodology involves two steps. First, all the variables relevant to the adoption of innovative approaches and performance parameters are identified. Subsequently, primary data are gathered from decision-makers of 200 biotechnological firms and a structural equation modeling analysis is performed. Findings: The study's results showed that the open innovation practice, such as interaction with large research and development (R&D) firms and customers, influences the performance parameters. The findings indicate that closed and open innovation practices positively impact performance measures like innovation, firm and economic performance. The results also indicate the mediating role of firm performance. However, the innovation performance was not found to mediate the relationship. Originality/value: This examination gives experimental bits of knowledge from any confining influence innovation approaches in India. Analysts and specialists of firms can use the results of the current study to comprehend the effect of various innovation practices on different performance measures.