Conference Proceedings

International Conference on Advances In Social Science, Management and Human Behaviour - SMHB 2013

Accounting for Open Innovation: Evidences from the Bio-Pharmaceutical Industry

Author(s) : CAMMARANO A, CAPUTO M, LAMBERTI E, MICHELINO F

Abstract

The paper provides an accounting framework for measuring the openness degree of innovation processes of companies through the analysis of annual reports. Four openness dimensions are defined - outbound, inbound,economic and financial - based on revenues and costs from open innovation activities and investments and divestments of innovation-related intangibles occurring in either separate acquisitions or business combinations. Throughout the definition of the methodological framework a number of examples referring to bio-pharmaceutical companies will be reported in order to illustrate the specific items disclosures in financial statements. This will allow to underline not only the differences that raise from adopting either IFRS or US GAAP standards, but also, within the same standards framework, the variety of both disclosing methods and terminology. The model is then applied to a sample of 138 R and D intense companies operating in the bio-pharmaceutical industry. The paper contributes to the research concerning innovation metrics, by providing an accounting framework for the measurement of what is traded in the innovation market: research and development, intellectual property and know-how.

Conference Title : International Conference on Advances In Social Science, Management and Human Behaviour - SMHB 2013
Conference Date(s) : October 12-13, 2013
Place : Hotel Novotel Zurich West, Zurich, Switzerland
No fo Author(s) : 4
DOI : 10.15224/978-981-07-7965-8-81
Page(s) : 95 - 101
Electronic ISBN : 978-981-07-7965-8
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