New ESCP research reveals that collaborating with users isn't just good practice—it's smart business
From software development to product design, Open Source has long been praised for its spirit of collaboration and transparency. But what if its real superpower lies in something even more compelling — its ability to create measurable business value?
A new study by Dilan Aksoy-Yurdagul, Assistant Professor at ESCP Business School, Madrid Campus, reveals that when firms work with user communities through Open Source code contributions—and make clear that they’re doing it to learn from users—they see a tangible boost in stock market performance and long-term gains in R&D efficiency.
Turning Collaboration Into Competitive Advantage
Published in R&D Management (2025), the study analysed stock market reactions to 149 code contribution announcements made by 65 firms. The results were striking:
“Firms that explicitly stated their goal to gain product-related insights from user communities are associated with 1.85% more market value as opposed those code contributions that do not state this intent”
This is more than just a short-term financial bump. The study shows that working closely with user innovators—developers, designers, and problem-solvers who actively engage in Open Source communities—helps firms build better products faster, leading to increased R&D efficiency in the years that follow.
Why User Communities Matter
Professor Aksoy-Yurdagul identifies three key reasons user communities are such a rich source of innovation:
- They spot unmet needs – because they’re using the products every day, often in unexpected ways.
- They bring deep contextual knowledge – grounded in real-world environments that internal R&D teams might not see.
- They collaborate at scale – sharing insights and improvements openly, across industries and borders.
Users often develop functionality that firms haven’t even considered. When companies engage with these communities, they don’t just gain feedback—they tap into a distributed innovation engine.
Dilan Aksoy-YurdagulAssistant Professor at ESCP Business School
From Insight to Impact: R&D Efficiency Gains
The study also explores a key mechanism behind these value gains: R&D efficiency, measured using a firm’s “Research Quotient” (RQ)—a metric that links innovation input to revenue outcomes.
Companies that worked with Open Source communities saw sustained improvements in RQ within three years, confirming that collaborative innovation isn't just good for ideas—it’s good for operational performance.
Relevant links
Aksoy-Yurdagul, D. (2025). Generating Value by Working With User Communities: An Analysis of Financial Market Returns to Corporate Open Source Code Contributions, R&D Management.
About
Dilan Aksoy-Yurdagul is an Assistant Professor of Management at ESCP Business School, Madrid campus. She joined ESCP in 2022, following roles as a visiting professor in the Department of Economics at Carlos III University of Madrid and as an Assistant Professor at Rennes School of Business in France. Her research focuses on technology management and innovation, strategy, and organisational design, with particular interest in open and user innovation, co-creation processes, and themes related to AI.
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