The article "Challenges of Open Innovation: The Paradox of Firm Investment in Open Source Software" by Joel West and Scott Gallagher explores the challenges firms face in applying open innovation strategies, particularly in the context of open source software. The authors identify three key challenges: maximizing returns from internal innovation, incorporating external innovation into internal development, and motivating outsiders to contribute ongoing external innovations. They argue that the paradox of firms investing in open source software lies in the fact that the results of these efforts are often shared with competitors. To address these challenges, the authors examine the strategies employed by firms involved in open source software, including pooled R&D/product development, spinouts, selling complements, and attracting donated complements. These strategies help firms maximize returns, integrate external knowledge, and maintain a steady stream of external innovations. The article also discusses the implications of open innovation for other industries and suggests avenues for future research, such as the role of IP protection and the impact of patent litigation on open innovation.The article "Challenges of Open Innovation: The Paradox of Firm Investment in Open Source Software" by Joel West and Scott Gallagher explores the challenges firms face in applying open innovation strategies, particularly in the context of open source software. The authors identify three key challenges: maximizing returns from internal innovation, incorporating external innovation into internal development, and motivating outsiders to contribute ongoing external innovations. They argue that the paradox of firms investing in open source software lies in the fact that the results of these efforts are often shared with competitors. To address these challenges, the authors examine the strategies employed by firms involved in open source software, including pooled R&D/product development, spinouts, selling complements, and attracting donated complements. These strategies help firms maximize returns, integrate external knowledge, and maintain a steady stream of external innovations. The article also discusses the implications of open innovation for other industries and suggests avenues for future research, such as the role of IP protection and the impact of patent litigation on open innovation.