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Open Innovation

Concept

The term was created by Henry Chesbrough, a professor and director of the Center for Open Innovation at Berkeley University in California.

"Open Innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology."
Extract from CHESBROUGH, H. (2003). Open Innovation: The New Imperative for Creating And Profiting from Technology, Harvard Business School Press, 272 pages.

In other words, it is more efficient to open channels and to let out ideas at various levels in a company than relying on its internal efforts to innovate.

Open Innovation ? Closed Innovation*

* Only developed in-house, under the seal of trade secret

Different approaches :

  • Networking
  • Web 2.0 (mass collaboration)
  • Transactions

Main Benefits

  • Reduction of cost, risk and internal resources required
  • Time saving
  • Achievement of greater results, including break-through innovations, thanks to the variety of contributions
  • Access to results generated by others
  • Access to resources not available internally

Main Challenges

  • Choice of projects
  • Selection of partners
  • Communication throughout the project
  • Privacy
  • Management of Intellectual Property/li>
  • Cost Management
  • Transfer of results

Reference Books

CHESBROUGH, H. (2011). Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era, Jossey-Bass, 256 pages.

BESSANT, J., TIDD, J. (2011). Innovation and Entrepreneurship, Wiley, 2nd Edition, 604 pages.

BESSANT, J., TIDD, J. (2013). Managing Innovation, Integrating Technological, Market and Organizational Change, Wiley, 5th Edition, 680 pages.

SCHILLING, M. (2013). Strategic Management of Technological Innovation, McGraw-Hill Higher Education, 4th Edition, 320 pages.