Perhaps not exactly how you want it to appear (that requires probably selecting the right bibtex style) but here is something close with the standard:
\begin{filecontents}{test.bib}
@inbook{ X,
author = {O. Grandstrand},
chapter = {Innovation and Intellectual Property Rights},
crossref = {Y}
}
@book{ Y,
editor = {J. Fagerberg and D.C. Mowery and R.R. Nelson},
title = {Oxford Handbook of Innovation},
booktitle = {Oxford Handbook of Innovation},
publisher = {Oxford University Press},
address = {Oxford},
year = 2004
}
\end{filecontents}
\documentclass{article}
\begin{document}
\nocite{*}
\bibliographystyle{plain}
\bibliography{test}
\end{document}
This results in

There are two reference here (both the chapter and the book) because I use \notcite on all antries. If just the chapter is cited then the result would be

The problem is that most if not all styles (that I know of) do not use both author and editor in a single entry even though it would make a lot of sense here. They only do that for @inproceedings and @incollection (I see that you found the latter by now yourself).
By default, BibTeX adds a separate citation to the whole book cross referenced when there are 2 or more different citations that crossref a complete work (even if the complete work is not explicitly cited anywhere. On modern BibTeX implementations this can be customized when running BibTeX by using the switch --min-crossref=<number>.