Joel highlighted that while sectoral systems of innovation have been studied extensively to understand the interdependence of innovation activities and capabilities within industries, the role of open innovation in these systems has often been overlooked. Joel reviewed prior research to demonstrate how firms in the healthcare sector—spanning biotechnology, traditional pharmaceuticals, medical equipment, and tools—engage in all modes of open innovation. He discussed how incumbent firms often in-license technologies, acquire new technologies and companies, and collaborate with universities and other firms, both large and small.
Additionally, the practice of coupled innovation, through both bilateral and increasingly multilateral collaborative research, is a key feature of this sector. The chapter offers a compelling example of how open innovation can enrich the understanding of sectoral systems, particularly in science-based industries. Joel also presented a general model for open innovation knowledge flows within these industries, making this chapter an essential read for those interested in the intersection of open innovation and sectoral studies, especially in the healthcare sector.
