Societal Trust and Open Innovation

By • on August 23, 2018

The Science Direct website posted a study which investigates whether societal trust—a key aspect of informal cultural norms—serves as an effective mechanism in improving relational governance among partners, thereby leading to better collaborative outcomes. The study shows that firms in high trust countries are able to produce a higher level of joint output (i.e., co-owned patents). It further shows that open innovation is the channel through which societal trust promotes innovative efficiency. Overall, the study establishes societal trust as a key factor in influencing the efficiency of open innovation.

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