Open innovation and digital transformation in the automotive industry: a comparative analysis of South Korea, Japan and Germany

Abstract

Purpose: A research gap exists regarding the impact of digital transformation on automotive open innovation, despite extensive literature on both topics individually. This study aims to fill this. Design/methodology/approach: The study analyzes patent-based open innovation before and after the digital transformation, focusing on US patents filed by automakers from South Korea, Japan and Germany during three periods: 2000–2001, 2010–2011 and 2020–2021. Second, in-depth interviews with selected automotive firms from these countries were conducted to complement the patent analysis and develop grounded theory. Findings: The common effect of digital transformation on automotive firms’ open innovation channels in all three countries follows a trajectory from R&D collaboration through value chain open innovation to open innovation in other industries. There are notable differences in the primary focus of open innovation among automakers in the three countries, with South Korea emphasizing R&D, Japan focusing on the automotive value chain and Germany engaging in open innovation with other industries. Research limitations/implications: Investigating the differences in open innovation channels and structures between electric auto parts and non-electric auto parts through case studies and the statistical research method could be a compelling next research topic as another limitation of this research. Originality/value: First, this research demonstrates that firms in the same sectoral innovation system can cultivate different open innovation channels within the knowledge funnel, depending on the regional innovation system (RIS) and national innovation system (NIS). Second, with DT, existing firms’ value chains are evolving and expanding from traditional trajectories to new, information technology-related sub-sectors. © 2024, Emerald Publishing Limited.