How do Swedish SMEs overcome the barriers of open innovation in practice?

Abstract: As the closed innovation model requires firms to be strongly reliant on their own R&D- capabilities in order to generate new innovations (van de Vrande et al., 2009, p. 425), a new approach has emerged over the last decade: The open innovation model. Open innovation is a model where organizations commercialize both their own and external ideas through purposive out and inflows of information (Chesbrough, 2006, p. 1). As a result, enterprises can benefit from the reduction of costs it infers, and simultaneously gain a larger amount of competence (Ghezzi et al., 2018; Rehman et al., 2018; Dodgson et al., 2006).  The open innovation model favors smaller firms and gives them an increasingly prominent position in the innovation landscape (Chesbrough, 2003, cited in van de Vrande et al., 2009, p. 427), and since SMEs are limited by a lack of financial resources, manpower, and substitutes for lack of sales, they especially benefit from collaboration with external parts to increase innovation performance (Hanna & Walsh, 2002; Kaufmann & Tödtling, 2002). However, successfully implementing an open innovation model as an SME comes with its unique challenges. In this study we will aim to investigate how SMEs in Sweden addresses these barriers through the following research question:  How do Swedish SMEs overcome the challenges of open innovation in practice?  The purpose of our study was to explore how SMEs overcome the barriers of working with open innovation in order to provide guidance for organizations who struggle to do so. To answer our research question and fulfill our purpose, we have conducted semi- structured interviews with eight different decision-makers from eight different SMEs. We performed a thematic analysis with an inductive approach. Our study found many ways that SMEs overcome barriers related to open innovation and resulted in several actions for decision-makers to overcome different categories of barriers. For example, our research showed how an equal exchange of value between partners could be an efficient way of maintaining a partnership, how shaping the team to be open for and involved in the organization's innovation work was a way of overcoming the barrier of company culture, and that educating the employees on open innovation was a way of tackling the barrier of lack of resources.  From a theoretical standpoint, our study contributes with a new perspective on the existing literature. It complements what is claimed to be an under-researched area, not only for open innovation in SMEs in general (Lee et al., 2010, p. 299), but also with a focus on overcoming innovation barriers (Hölzl & Janger, 2012, p. 25). It also brings a new geographical perspective of the concept, providing insights from the Swedish innovation climate.