Alternative avenues for the development of economy through open innovation can be considered in possibility but these will suffice for the purpose of the paper. Social capital is regarded as a requisite for the innovation of open nature along with the outflow subsequent through its implementation. A core network is required for initializing its operation and as technology and knowledge disseminates further, ties are formed amid organizations. A study conducted by Westergren (2012) on the KLAB group of mineral’s transition from systems of closed manner to more opened innovation systems surface numerous open innovation’s preconditions.
Within them was the requirement for expertise in integrating a culture that promotes and supports sharing of knowledge and articulation of environment that is trustful. The transition has further led to the development of new networks of value. Resilience of the firm can be developed by several practices related to the Open Innovation. Practices of open nature inclusive of OI and the implementation of the open source software are the tools that are suggested for the creation of innovations that are good publically. This has been reviewed within the context of Greek economy that is struggling and deeming a method viable for the reduction of cost within the processes of innovation. As such OI can be considered as a method of valuable nature for sustaining innovation output in instances wherein the economy is pressurized.
Within the software SME context, it has been depicted that the Open Innovation could be utilized for the purpose of diversifying the range of products and services. Enabling the software engineers and programmers to assign a part of their working day to the project of open source as per their own choice creating such an environment wherein the opportunities present within the market can be identified more easily. It also enables simplification of the new technology absorption within the organization and functions as a buffer which prevents the stagnation of the product.
The effects on performance are almost negligible to small acquisition of technologies and domestic scientific knowledge while the sources that are foreign improvise the performance of the firm significantly.