Systematic Review of Open Innovation Approaches for Industrialisation in Developing Economies

Industrialization remains a cornerstone of economic transformation in developing countries, yet progress is often constrained by fragmented innovation systems, resource limitations, and institutional barriers. Open innovation offers an alternative paradigm by promoting knowledge flows across organizational and sectoral boundaries. This systematic literature review critically examines how open innovation partnership models are conceptualized, implemented, and adapted to support industrialization in low- and middle-income countries. The results demonstrate a progressive shift from linear innovation approaches to more networked, ecosystem-based configurations, with inbound, outbound, and coupled innovation strategies increasingly evident. University-industry-government (UIG) partnerships, intermediary-facilitated collaborations, and digital platforms emerge as dominant mechanisms. SMEs are pivotal actors but encounter persistent capability and resource constraints. Key enablers include institutional trust, leadership commitment, absorptive capacity, and digital infrastructure. Conversely, barriers such as weak policy coherence, infrastructural deficits, and fragmented coordination inhibit innovation outcomes. The analysis also identifies emerging trajectories, notably the integration of AI and digital technologies in innovation ecosystems and the evolving role of intermediaries. This review highlights critical research gaps, particularly the need for empirically validated frameworks and SME-centric strategies and offers insights to inform policy design and the development of inclusive, adaptive innovation systems aligned with sustainable industrialization objectives.