The research topic has been selected from the lectures on innovation and in particular open innovation. Research over open innovation has highlighted that not every proper idea comes internally from a company (Adams et al., 1996). As per the extent of literature in this regard, scientific knowledge of external nature inclusive of thought process, technological development and knowledge development through related organizations are an essential strategic driver towards performance (Lichtenthaler, 2009). This might result in enriching individual understanding of a firm. This further serves as a seed for developments in technology in future.
A consistent explanation of theory with regard to why certain organizations have higher likeliness of benefitting from knowledge of external nature than the others is a concern that is inclusive of the conception of how much innovation is absorbed by a firm (Aiken et al., 1991). The focus in this research proposal will be over innovation influence over competition and capabilities transfer that stems through globalization. A lot of research has been done till now over the economic growth drivers. Several models have attempted at describing this and the policies aiming at stimulating growth by various dynamics. However, less has been done for measuring the direct impact that the open innovation can have within the emerging markets, especially when it comes to acknowledging their economic growth profitability.
According to Chesbrough (2003), it has been posited that organizations in the 21st century have more likeliness of being successful through open innovation engagement. This is inclusive of forming relationships of collaborative nature with other companies as the base to achieve competitive benefit especially by new or improvised product development. Most of the published research over open innovation has a tendency of focusing over the organizational process nature related with external knowledge management. As a result, there still exist an essential void within the domain of literature especially under empirical claims validation. These state that open innovation results in enhancing performance of financial nature. A same notion over the empirical data inadequacy with regard to open innovation influence over finance performance was given through Gianiodis et al. (2010).