Dynamic model and simulation of open innovation in product development

ABSTRACT

In order to meet the needs of customers and take advantage of the customer’s innovative resources, companies open up their design activities of products to customers. In contrast to the traditional product innovation, the primary characteristic of open innovation is the participation of a large number of autonomous individuals across organisational boundaries, and there is not a central authority. Hence, it is necessary to study the dynamic mechanism for obtaining a good decision. This paper first studies the evolution of individual interaction based on game theory and then studies the dynamic characteristics of large-scale interaction. According to the results of simulation, it is concluded that the opinions are convergent under various communication conditions, and he convergent velocity distribution of the product solution with payoffs as the independent variable is obtained. A case study is used to deeply understand the participant behaviour based on the game theory and verify the conclusion of dynamic analysis in this paper.

KEYWORDS:

• Open innovation
• product development
• game theory
• complex networks
• dynamic

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This work was supported by the National Natural Science Foundation of China [51575264].