Open Innovation in Firms Located in the Republic of San Marino

Opening up the innovation process to include collaboration with external partners is an increasingly common practice among firms. Not only are large firms, driven by the need to increase their knowledge in order to develop complex products, opening up their company boundaries during the phases of the innovation process, but also small and medium-sized firms appear to have understood the usefulness of forming alliances and building networks in order to compete in the knowledge economy. This paper aims to further investigate the actors, the phases of the innovation process, the dynamics and the determinants that prompt businesses in a small state such as San Marino, to collaborate in innovation beyond their company and territorial boundaries. The research involved selecting forty-two of the most innovative companies within the state, conducting interviews with the company directors or persons in charge of R&D, and processing the collected data. From an academic point of view, the results for the most part confirm the literature, whereas from a management point of view, they are especially useful to company directors and government agencies in activating, supporting and guiding innovation policies.