Harvesting Serendipity from Open Innovation:How Pre-Competitive Collaboration Generates Unexpected Strategic Value

Open innovation (OI) enables firms to access external knowledge and uncover hidden opportunities. However, firms often struggle to capture value from unexpected discoveries because OI typically occurs in highly structured, formalized settings—such as publicly funded research consortia—where rigid governance can stifle flexibility. This study examines how firms can navigate these structural constraints to systematically benefit from serendipitous findings. Through a five-year longitudinal study of a pharmaceutical company within a large international research consortium, we reveal the mechanisms that allow firms to capture value from unexpected innovations despite the limitations of formal project objectives.