University – industry interaction on knowledge management through open innovation systems

This theoretical paper discusses knowledge management in an open innovation systems context on a basis of university – industry collaboration. Knowledge management is necessary to ensure the inbound and outbound flows of knowledge that define open innovation, and to ensure that the knowledge, provided by the open innovation process ,can be used for successful collaboration between universities and industry. The importance of knowledge is emphasized in the literature on open innovation, but most modern literature takes only a narrow point of view on the problem and is not related to knowledge management through inter-institutional collaboration. The paper discusses the General framework conditions for efficient university-industry collaboration and in this context, it outlines the Systematic procedure of open innovation implementation. The main outlined knowledge flows in networking shows a combination of a positive and neutral effect on the effectiveness of innovation at the level of business units, which means that open innovation within the network is generally beneficial for a multidisciplinary organization as well as Incoming innovations across organizational boundaries are beneficial for the innovation activity of a business unit, in contrast to outgoing innovations that have a neutral effect on it. The ability of organization to recognize the value of new external information, absorb and apply it for commercial purposes is crucial for its innovative potential. The creation of knowledge and the ability to master can be created without a special R&D unit in university - joint research and development can be fruitful, and trade areas can provide the opportunity for training and joint acquisition of new knowledge