Open Innovation in Enterprise Strategies in Central and Eastern Europe: The Case of Estonia

Abstract The institutional environment shapes the structure of political, social and economic incentives and influences the use of open innovation strategies by enterprises. The aim of the current article is to explore open innovation processes in the context of Central and Eastern Europe using the example of Estonia. As a methodology, 100 telephone interviews were conducted using a semi-structured questionnaire. Proximity is used as an organising concept for explaining knowledge flows in the innovation of enterprises. The research shows that innovative enterprises draw knowledge from external sources, the relationships of innovative enterprises rely on weak ties and their open innovation is supported by technological and cognitive proximity. The results of the analysis can be used to understand enterprise strategies in other Central and Eastern European countries as well as how knowledge is accessed by enterprises in their innovation process, what type of knowledge and where it is sourced. Future research should broaden the scope of studying the use of open innovation strategies by enterprises using broader samples, capturing firms in different sectors and countries. JEL Classifications: L26, O30, O31 Keywords: open innovation, enterprise strategies, SME, knowledge flows, institutional development