This document provides an overview of open innovation including:
- Defining open innovation as using external and internal knowledge to accelerate innovation and expand markets.
- Describing three modes of open innovation: inbound, outbound, and coupled.
- Noting that while open innovation overlaps with other areas, it emphasizes the role of business models in connecting technical and economic domains.
- Summarizing recent research on open innovation which is linking it to established theory, improving measurement, and better understanding performance.
Profiting from External Innovation: A Review of the ResearchJoel West
Nov 18, 2011 keynote presentation given by Prof. Joel West of KGI, at the 2011 Conference on Mass Customization, Personalization and Co-Creation (MCPC2011.com).
“Distributed Perspectives on Innovation: Open Innovation, User Innovation and Beyond.” Keynote talk given 5 May 2010 at the Georg-August-Universität Göttingen, for workshop entitled “New Forms of Collaborative Production and Innovation: Economic, Social, Legal and Technical Characteristics and Conditions”
Profiting from External Innovation: A Review of the ResearchJoel West
Nov 18, 2011 keynote presentation given by Prof. Joel West of KGI, at the 2011 Conference on Mass Customization, Personalization and Co-Creation (MCPC2011.com).
“Distributed Perspectives on Innovation: Open Innovation, User Innovation and Beyond.” Keynote talk given 5 May 2010 at the Georg-August-Universität Göttingen, for workshop entitled “New Forms of Collaborative Production and Innovation: Economic, Social, Legal and Technical Characteristics and Conditions”
Open Innovation: An Paradigm Shift for Sustainable Brand Pioneers - Henry Che...Sustainable Brands
Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal value creation, and expand the markets for external use of innovation. The paradigm assumes that for invention and scientific advancement, firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as they look to advance their technology. Dr. Henry Chesborough provides a look at the idea of open innovation as a backdrop to this year's launch of GreenXChange, an open sustainable intellectual property platform and coalition launched at Davos in January.
A User's Perspective: Innovating Smarter with Invention Machine GoldfireIHS Goldfire
Customer Co-Host: Mr. William (Bill) Hessler; Mechanical Engineer Leader, Seasoned Innovator & Patent Holder; CSC in Aberdeen Proving Ground, MD
Description: Learn how to take the "hit or miss" out of your product innovation processes from a seasoned innovator and patent holder, Mr. William (Bill) Hessler. Hear first-hand what Bill has learned through more than 14 years of designing next-generation technologies, solving root causes, mining patents and improving existing products at Fortune 1000 and mid-sized industrial and medical manufacturing companies, by applying Goldfire and basic TRIZ principles to his research.
During this informative webinar, you will learn:
* Best practices Bill uses to boost his daily innovation productivity, more rapidly solve problems, and generate breakthrough solutions
* Real world applications of Goldfire
* When to apply the software, the types of problems it helps solve, and the successes achieved as a result
* ...and much more!
IP Due Diligence-What Investors Want To See | Quan Nguyen | Lunch & Learn UCICove
About UCI Applied Innovation:
UCI Applied Innovation is a dynamic, innovative central platform for the UCI campus, entrepreneurs, inventors, the business community and investors to collaborate and move UCI research from lab to market.
About the Cove @ UCI:
To accelerate collaboration by better connecting innovation partners in Orange County, UCI Applied Innovation created the Cove, a physical, state-of-the-art hub for entrepreneurs to gather and navigate the resources available both on and off campus. The Cove is headquarters for UCI Applied Innovation, as well as houses several ecosystem partners including incubators, accelerators, angel investors, venture capitalists, mentors and legal experts.
Follow us on social media:
Facebook: @UCICove
Twitter: @UCICove
Instagram: @UCICove
LinkedIn: @UCIAppliedInnovation
For more information:
cove@uci.edu
http://innovation.uci.edu/
Startup Building Blocks, Challenges, and Pitfalls From Formation to Growth | ...UCICove
About UCI Applied Innovation:
UCI Applied Innovation is a dynamic, innovative central platform for the UCI campus, entrepreneurs, inventors, the business community and investors to collaborate and move UCI research from lab to market.
About the Cove @ UCI:
To accelerate collaboration by better connecting innovation partners in Orange County, UCI Applied Innovation created the Cove, a physical, state-of-the-art hub for entrepreneurs to gather and navigate the resources available both on and off campus. The Cove is headquarters for UCI Applied Innovation, as well as houses several ecosystem partners including incubators, accelerators, angel investors, venture capitalists, mentors and legal experts.
Follow us on social media:
Facebook: @UCICove
Twitter: @UCICove
Instagram: @UCICove
LinkedIn: @UCIAppliedInnovation
For more information:
cove@uci.edu
http://innovation.uci.edu/
Open Innovation for the Digital Shift - A collection of case studies in the I...Alberto Minin
Based on 13 case studies of innovative ICT and ICT-enabled European companies, we describe how the implementation of Open Innovation Strategies (OIS) characterized the successful exploitation of technological innovation projects. We investigated 4 large companies and 9 SMEs.
In all our 13 cases, companies’ innovation strategies tended to be “open but controlled”. A strong balance was needed between openness (e.g. collaborative R&D, open business models and digital 2.0 business models) and control (clear appropriation strategies to ensure a “return on R&D investments”). Large companies can easily implement OIS because they are better positioned than SMEs to orchestrate research partnerships (e.g. setting the agenda of large consortia). These companies are more likely to approach OIS using Human Resources Management and to focus on long–term objectives. SMEs implement OIS by opening up their business model and benefit from relevant external knowledge needed to unlock the market potential of technology. SMEs participate in large R&D networks and engage in ecosystems to gain reputation, foster expertise exchange, and gather new skills. An OI culture and adequate appropriation strategies allow SMEs to successfully open their R&D processes without bearing rising search costs and without risking losing business-critical knowledge
We identified drivers and barriers for companies pursuing OIS in Europe. Drivers include EU consortia (cooperation and networking) and the building of communities and platforms to share assets that they can control (e.g. IP protected assets). Companies also faced barriers to OIS because their internal management struggled to balance internal R&D and external knowledge absorption. Some companies felt that European and national innovation systems did not provide sufficient institutional support and/or they felt that some rules and regulations prevented innovation.
User innovation: learning from creative consumersIan McCarthy
Users have long been identified as important sources of innovation. This includes innovations from intermediate users (i.e., when companies are the users) and consumer users (i.e., when individuals who are users). In this talk I will introduce one particular type of innovating consumer user – the creative consumer. These are individuals who adapt, modify and hack existing propriety offerings, as opposed to creating completely new products. Then, together we will explore the characteristics of different examples of creative consumers and examine how companies can identify, acquire and leverage the innovation-related knowledge produced by such users.
Through an open call, progressive organizations can fast-track R&D and traditional product development by reaching out to some of the world's most creative thinkers—icitizens who thrive on solving tough challenges and accelerating change.
Open innovation & transformation acceleration - 04th july 2020 I Nouamane Che...Nouamane Cherkaoui
Despite thousands of companies around the world using open innovation, there is still some confusion about what exactly is Open Innovation.
In this post, I’ll define open innovation once and for all, and will take you through some of the ways you can use it to generate valuable ideas and solutions to tough problems.
Innovation Procurement: What is it and what does it mean for Grand Challenges...STIEAS
OECD expert workshop on the measurement of public procurement of innovation. "Innovation Procurement: What is it and what does it mean for Grand Challenges, Growth and Employment?", presentation by Charles Edquist
Open keynote presented 19 Sept 2013 at workshop “Strategizing open innovation: foundations for new approaches” at the University of Bath, School of Management.
At Atlanta Competitive Advantage Conference, presentation for panel on “Open Innovation: Multidisciplinary Perspectives and Opportunities for Future Research”
Open Innovation: An Paradigm Shift for Sustainable Brand Pioneers - Henry Che...Sustainable Brands
Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal value creation, and expand the markets for external use of innovation. The paradigm assumes that for invention and scientific advancement, firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as they look to advance their technology. Dr. Henry Chesborough provides a look at the idea of open innovation as a backdrop to this year's launch of GreenXChange, an open sustainable intellectual property platform and coalition launched at Davos in January.
A User's Perspective: Innovating Smarter with Invention Machine GoldfireIHS Goldfire
Customer Co-Host: Mr. William (Bill) Hessler; Mechanical Engineer Leader, Seasoned Innovator & Patent Holder; CSC in Aberdeen Proving Ground, MD
Description: Learn how to take the "hit or miss" out of your product innovation processes from a seasoned innovator and patent holder, Mr. William (Bill) Hessler. Hear first-hand what Bill has learned through more than 14 years of designing next-generation technologies, solving root causes, mining patents and improving existing products at Fortune 1000 and mid-sized industrial and medical manufacturing companies, by applying Goldfire and basic TRIZ principles to his research.
During this informative webinar, you will learn:
* Best practices Bill uses to boost his daily innovation productivity, more rapidly solve problems, and generate breakthrough solutions
* Real world applications of Goldfire
* When to apply the software, the types of problems it helps solve, and the successes achieved as a result
* ...and much more!
IP Due Diligence-What Investors Want To See | Quan Nguyen | Lunch & Learn UCICove
About UCI Applied Innovation:
UCI Applied Innovation is a dynamic, innovative central platform for the UCI campus, entrepreneurs, inventors, the business community and investors to collaborate and move UCI research from lab to market.
About the Cove @ UCI:
To accelerate collaboration by better connecting innovation partners in Orange County, UCI Applied Innovation created the Cove, a physical, state-of-the-art hub for entrepreneurs to gather and navigate the resources available both on and off campus. The Cove is headquarters for UCI Applied Innovation, as well as houses several ecosystem partners including incubators, accelerators, angel investors, venture capitalists, mentors and legal experts.
Follow us on social media:
Facebook: @UCICove
Twitter: @UCICove
Instagram: @UCICove
LinkedIn: @UCIAppliedInnovation
For more information:
cove@uci.edu
http://innovation.uci.edu/
Startup Building Blocks, Challenges, and Pitfalls From Formation to Growth | ...UCICove
About UCI Applied Innovation:
UCI Applied Innovation is a dynamic, innovative central platform for the UCI campus, entrepreneurs, inventors, the business community and investors to collaborate and move UCI research from lab to market.
About the Cove @ UCI:
To accelerate collaboration by better connecting innovation partners in Orange County, UCI Applied Innovation created the Cove, a physical, state-of-the-art hub for entrepreneurs to gather and navigate the resources available both on and off campus. The Cove is headquarters for UCI Applied Innovation, as well as houses several ecosystem partners including incubators, accelerators, angel investors, venture capitalists, mentors and legal experts.
Follow us on social media:
Facebook: @UCICove
Twitter: @UCICove
Instagram: @UCICove
LinkedIn: @UCIAppliedInnovation
For more information:
cove@uci.edu
http://innovation.uci.edu/
Open Innovation for the Digital Shift - A collection of case studies in the I...Alberto Minin
Based on 13 case studies of innovative ICT and ICT-enabled European companies, we describe how the implementation of Open Innovation Strategies (OIS) characterized the successful exploitation of technological innovation projects. We investigated 4 large companies and 9 SMEs.
In all our 13 cases, companies’ innovation strategies tended to be “open but controlled”. A strong balance was needed between openness (e.g. collaborative R&D, open business models and digital 2.0 business models) and control (clear appropriation strategies to ensure a “return on R&D investments”). Large companies can easily implement OIS because they are better positioned than SMEs to orchestrate research partnerships (e.g. setting the agenda of large consortia). These companies are more likely to approach OIS using Human Resources Management and to focus on long–term objectives. SMEs implement OIS by opening up their business model and benefit from relevant external knowledge needed to unlock the market potential of technology. SMEs participate in large R&D networks and engage in ecosystems to gain reputation, foster expertise exchange, and gather new skills. An OI culture and adequate appropriation strategies allow SMEs to successfully open their R&D processes without bearing rising search costs and without risking losing business-critical knowledge
We identified drivers and barriers for companies pursuing OIS in Europe. Drivers include EU consortia (cooperation and networking) and the building of communities and platforms to share assets that they can control (e.g. IP protected assets). Companies also faced barriers to OIS because their internal management struggled to balance internal R&D and external knowledge absorption. Some companies felt that European and national innovation systems did not provide sufficient institutional support and/or they felt that some rules and regulations prevented innovation.
User innovation: learning from creative consumersIan McCarthy
Users have long been identified as important sources of innovation. This includes innovations from intermediate users (i.e., when companies are the users) and consumer users (i.e., when individuals who are users). In this talk I will introduce one particular type of innovating consumer user – the creative consumer. These are individuals who adapt, modify and hack existing propriety offerings, as opposed to creating completely new products. Then, together we will explore the characteristics of different examples of creative consumers and examine how companies can identify, acquire and leverage the innovation-related knowledge produced by such users.
Through an open call, progressive organizations can fast-track R&D and traditional product development by reaching out to some of the world's most creative thinkers—icitizens who thrive on solving tough challenges and accelerating change.
Open innovation & transformation acceleration - 04th july 2020 I Nouamane Che...Nouamane Cherkaoui
Despite thousands of companies around the world using open innovation, there is still some confusion about what exactly is Open Innovation.
In this post, I’ll define open innovation once and for all, and will take you through some of the ways you can use it to generate valuable ideas and solutions to tough problems.
Innovation Procurement: What is it and what does it mean for Grand Challenges...STIEAS
OECD expert workshop on the measurement of public procurement of innovation. "Innovation Procurement: What is it and what does it mean for Grand Challenges, Growth and Employment?", presentation by Charles Edquist
Open keynote presented 19 Sept 2013 at workshop “Strategizing open innovation: foundations for new approaches” at the University of Bath, School of Management.
At Atlanta Competitive Advantage Conference, presentation for panel on “Open Innovation: Multidisciplinary Perspectives and Opportunities for Future Research”
Distributed Perspectives on Innovation (UC Berkeley Aug 2010)Joel West
Revised slides for talk given August 31, 2010 at the UC Berkeley Center for Open Innovation, in the Open Innovation Speaker Series. Book references are hot-linked. See http://openinnovation.haas.berkeley.edu/speaker_series.html for the context
Talk by Joel West at a Academy of Management PDW (Professional Development Workshop) in Montréal, August 7, 2010. See http://www.openinnovation.net/Conference/AOM2010/ for full program
Corporate culture can be defined as the values, norms, attitudes and behavior patterns, that are shared within an organization [Herzog, 2011]. Corporate culture can be seen as the personality of a company that influences people's behavior within the organization, regardless of size and field of action
Open Innovation: An Introduction and Overview (Chalmers)Marcel Bogers
Presentation on "Open Innovation: An Introduction and Overview"
Part of seminar on “Open innovation - managing innovation across organizational boundaries” at Chalmers University of Technology, organization by the Managing-In-Between (MIB) research group at the Management of Organizational Renewal and Entrepreneurship (MORE) division at the Department of Technology Management and Economics (TME).
Description:
What does open innovation really mean? How does it change how we think about innovation processes? What are the managerial and organizational implications? Join us in this seminar to explore these questions with researchers and practitioners active in the field!
About the seminar:
The Managing-In-Between research group at the Department of Technology Management and Economics invites you to an inspiring seminar around open innovation, a topic that has gained increasing interest among researchers and practitioners. This seminar will highlight how the concept of open innovation has evolved, what it actually means, and outline where the research frontier is.
The seminar will feature presentations from one of the prominent researchers in the field of open innovation, Associate Professor Marcel Bogers, University of Southern Denmark as well as researchers from the Managing-In-Between research group at Chalmers, led by Associate Professor Susanne Ollila.
After the initial presentations, we would like to invite the audience to participate in a discussion around the organizational and managerial implications of open innovation for practice. This could be especially interesting to discuss in the Chalmers context where several efforts have been made to increase collaboration and innovation across organizational boundaries, but we still need to further our knowledge of how to support and manage such initiatives.
Source: http://www.chalmers.se/en/departments/tme/calendar/Pages/Open-innovation-seminar.aspx
Open Innovation, Open Source, Intellectual Property and business valueJoren De Wachter
What is Open Innovation? How is it different from Open Source? What is the role of Intellectual Property?
And how to create business value in an age of changing paradigms.
La innovación abierta (Open Innovation), término acuñado por el Profesor Henry Chesbrough, es una nueva estrategia de innovación bajo la cual las empresas van más allá de los límites internos de su organización y en particular donde la cooperación con profesionales externos pasa a tener un papel fundamental. Open Innovation significa combinar el conocimiento interno con el conocimiento externo para sacar adelante los proyectos de estrategia y de I+D. Significa también que las empresas utilizan tanto canales internos como externos para poner en el mercado sus productos y tecnologías innovadoras. Bajo este contexto, universidades y centros de investigación ofrecen nuevas perspectivas y soluciones a las compañías que utilizan este modelo. Este tipo de innovación responde a la posibilidad de ocurrencia de lo que se conoce como inteligencia colectiva.
Discussion Dynamics of Cooperation and CompetitionBeing successfuLyndonPelletier761
Discussion: Dynamics of Cooperation and Competition
Being successful in today’s business environment requires more nuanced thinking than just stressing competition. Consider General Electric, which found that a highly effective way to improve its KPIs in the aircraft engine market was to actually partner with a competitor. It seems counter-intuitive, but it worked. When General Electric and Snecma created an alliance to build aircraft engines, General Electric shielded certain sections of the production process to protect against the excess transfer of technology (“Snecma, GE Renew CFM Agreement,” 2008).
Consider the dynamics of cooperation and competition in the future business environment. For organizations that are in an environment of increasing cooperation/competition, consider the proactive role the HR department can serve in helping the C-suite think about balancing competition and cooperation. As part of the Discussion, give specific examples.
To prepare for this Discussion,
Review this week’s Learning Resources, especially:
· Resource fit in inter‐firm– See pdf
· Interpretive schemes – See pdf
· Knowledge transfer to partners – See pdf
· Two Favors of Open Innovation - See pdf
Assignment:
Post a cohesive and scholarly response based on your readings and research this week that addresses the following:
Tommy McMillian request letters from you that can show the parole board that he has a support system waiting outside.
Conduct additional research to analyze the dynamics of cooperation and competition in future business environments.
· From your research, discuss specific ideas or concepts regarding what proactive role can the HR department serve in helping the C-suite think about balancing competition and cooperation?
· Does cooperation/competition require equal resources from all partners?
· How are the decisions made about the levels of resources committed by each partner?
· If there is a wide disparity in net worth or market share of the partners, is it reasonable to expect each to commit the same percentage of resources?
· How are conflicts around cooperation and competition anticipated, planned for, and resolved by the HR department?
· No Plagiarism
· APA citing
FROM THE EDITOR
James A. Euchner
TWO FLAVORS OF OPFNINN01MFI0N
Since Henry Chesbrough published Open Innovation
(2003), the paradigm he described has been a subject of
great interest and experimentation in corporations. Ches-
brough defined open innovation as breaking down the
boundaries of the corporation so that "valuable ideas can
come from inside or outside the company and can go to
market from inside or outside the company, as well." He
contrasted this open paradigm with the more-traditional
closed innovation paradigm based on the captive R&D
laboratory.
Chesbrough's work encouraged companies to create
porous innovation pipelines and to become more aggres-
sive about licensing, working with start-up companies,
spinning out concepts that don't fit wi ...
Slides introducing the Researching Open Innovation PDW at the Academy of Management 2015 conference in Vancouver. Slides by Marcel Bogers, Jonathan Sims and Joel West
Discussant: Innovation Ecosystems (AOM 2014)Joel West
Closing discussant slides for August 4, 2014 session at Academy of Management 2014 entitled “Innovation Ecosystems: Benefits, Challenges, and Structures.” Covers talks by Luigi Marengo, Raymond Miles, Charles Snow and David Teece
“The Business of 3D Printing: The First Three Decades,” a keynote talk given at RWTH Aachen conference on “The Business and Economic Impacts of 3D Printing” http://bit.ly/TpQmrw
Workforce Needs of the California Solar IndustryJoel West
An April 19, 2011 webinar hosted by SolarTech, featuring SJSU faculty Meg Virick and Joel West; reported results from the first employer survey of the SJSU Solar Workforce Project
A talk delivered (via videoconference) to the Telecom Regulatory Authority of India. Examines rapid growth of smartphones in the US from 2007-2010, and the impact for carriers going forward.
Slides from a talk entitled “Browsing as the killer app: The success of the iPhone,” given at the Quello Center for Telecommunication Management & Law, Michigan State University, April 24, 2009. Based on a paper by Joel West and Michael Mace.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
An introduction to the cryptocurrency investment platform Binance Savings.Any kyc Account
Learn how to use Binance Savings to expand your bitcoin holdings. Discover how to maximize your earnings on one of the most reliable cryptocurrency exchange platforms, as well as how to earn interest on your cryptocurrency holdings and the various savings choices available.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
1. Open Innovation:
The First Decade
Joel West
KGI - The Keck Graduate Institute
Claremont, California
UCSD, Rady School of Management
January 27, 2015
2. Plan
• What is open innovation?
• Three modes of open innovation
- Inbound
- Outbound
- Coupled
• What’s next?
3. • Keck Graduate Institute of Applied Life
Sciences
• Youngest of 7 Claremont Colleges
• Founded in 1997: Harvey Mudd spinoff
• Funded by grant from Keck Foundation
• 300+ graduate students
• Preparing students for biotech careers
• Genentech, Amgen are biggest employers
What is KGI?
6. Open innovation: a common practice
• Qualcomm
- Outlicensing patents
- Selling components to handset makers
- Acquiring Snaptrack, Flarion, Atheros
• Amgen
- Licensed EPO to J&J (Procrit)
- Today in-licenses oncology drugs
• IBM
- Selling components to others
- Collaboration with Apache, Eclipse, Linux open source
communities
7. Invention vs. Innovation
“Inventions … do not necessarily lead
to technical innovations. In fact the
majority do not. An innovation in the
economic sense is accomplished only
with the first commercial transaction.”
—Freeman (1982: 7)
8. Latent value of an innovation
“The inherent value of a technology
remains latent until it is commercialized in
some way.
“A business model unlocks that latent
value, mediating between technical and
economic domains.”
– Chesbrough & Rosenbloom (2002)
9. Bringing innovation to market
• Creation
- Technical invention
- Basic research, applied research, product
development
• Commercialization
- Production, marketing, sales, distribution
- Requires different complementary assets
(Teece 1986)
10. Vertical Integration
Research of Alfred D Chandler (1918-2007)
• Studied large US firms 1840-1940
• Firms vertically integrate to supply own
inputs and control their outputs
- R&D is an essential part of integration
- Technology industries require large R&D labs
- Markets don’t exists to buy/sell innovation
• Integration widely adopted in practice
- Pattern of large 20th C US and MNC firms
12. Open Innovation
• Chesbrough (2003, 2006, 2007)
• Key points:
- Find alternate sources of innovation
Either markets or spillovers
- Find alternate markets for innovation
- Central role of the business model
• Cognitive managerial paradigm
• Overlaps with other work such as user
innovation
13. What is “open innovation”?
“Open innovation is the use of purposive
inflows and outflows of knowledge to accelerate
internal innovation, and expand the markets for
external use of innovation, respectively.”
Henry Chesbrough, O pe n Inno vatio n:
Re se arching a Ne w Paradig m (2006)
15. What’s new?
• Many antecedent/overlapping areas
- Technology sourcing, IP markets,
university licensing, alliances, supplier
innovation, user innovation
• New ideas include
- Role of the business model
- Agnostic to internal/external paths
- Rise of innovation intermediaries
Cf. Chesbrough (2006)
16. Open vs. user innovation
Open Innovation UserInnovation
Focal actor Firm User
Knowledge transfer IP Needs
IP regime Patents Free revealing
Innovation
production
Hierarchy Community,
individual
Motivations Monetary Social, personal
utility
Frank Piller & Joel West, Ch. 4 of O pe n
Inno vatio n: Ne w Fro ntie rs & Applicatio ns
17. Three open innovation processes
1. Inbound (or “outside-in”)
- External technology commercialized by the focal
firm
1. Outbound (or “inside-out”)
- A firm’s technology commercialized by others
1. Coupled combines these two
- Various forms of collaboration
Cf. Chesbrough (2003, 2006), Gassmann & Enkel (2004), Enkel et
al (2009), West & Gallagher (2006)
19. Why Look Outside for Innovation?
“Not all the smart people in the
world can work in one place.”
Bill Joy
co-founder
Sun Microsystems
20. Recent comprehensive review
• Goal: Synthesize inbound (& coupled)
• Sample from top management &
innovation journals
• Either mention “open innovation” or cite Chesbrough
(2003)
• Hand selected 291 down to 165
• 161 articles, 3 books, 1 chapter
Joel West & Marcel Bogers, Jo urnalo f Pro duct Inno vatio n
Manag e m e nt, July 2014
21. Breakdown of 165 OI pubs
Inbound: 118 Outbound: 50
Coupled: 70
57 14
11
24
26 1
32
23. 1. Obtaining Innovations
• Best covered of the phases
- Searching, enabling, filtering
- Sourcing particularly well covered
• Most popular area: sources of innovation
- Many crowdsourcing studies
- Also user-generated content
24. 2. Integrating Innovations
• Considers org capabilities and culture
- Limited examination beyond “Not Invented
Here”
- Clear challenges of processes, incentives
• Integration seems to be a black box
- How are these innovations integrated to
the firm?
- What skills are needed to do this well?
25. 3. Commercializing Innovations
• Lots of value creation
- Increased product releases, revenues
- What is net? Do costs go up?
• Assumes external innovations
commercialized same as internal ones
- How do firms differ in external innovation
commercialization capabilities?
26. 4. Reverse Paths
Beyond the linear model, this includes
• Feedback mechanisms
- Information flow upstream
• Reciprocal measures
- Ongoing interactions
- Includes co-creation, communities
28. What is outbound OI?
• Firms should find best/highest use of their IP
- Not all IP aligns to the firm’s business model
• Avoids Type II (false negative) error
• Can include licensing to rivals, spinoffs
- In parallel or instead of internal use
Inspired by Chesbrough study of Xerox PARC
spinoffs (Chesbrough & Rosenbloom, 2002)
29. Various IP licensing models
• Dolby Labs: $700m/yr, 88% margins
• Genentech: Humulin, Interferon
• IBM: licensing IP portfolio
• Dupont: licensing core technologies
• Game mods, e.g. Half-Life
• Xerox: creating spinoffs
30. Key challenges of outbound OI
• Identifying underused IP
• Simultaneous internal/external
commercialization
• Functioning IP markets
• Dilemma over appropriability
- Fear of sharing if weak IP
- Strong IP can delay other’s innovation
Chesbrough (2003, 2006b), Fabrizio (2006), Enkel
et al (2009), Dahlander & Gann (2010)
32. Coupled open innovation
• “Coupled” is different from inbound and
outbound
• Two modes of coupled interaction
- Bi-directional (Gassmann & Enkel, 2004)
Combines inbound & outbound
Applies to firm-to-firm R&D collaborations
- Interactive collaboration (Piller & West, 2014)
Joint production outside the firm
Different from either inbound or outbound
33. Coupled open innovation
Focal Firm Organization
Focal Firm
Organization or
Individual
Co- Creation
Bidirectional
Coupled
Interactive
Coupled
Source: Piller & West (2014), p. 39
34. Coupled open innovation
Examples of coupled open innovation:
•Open source (West & Gallagher, 2006)
•Communities (West & Sims, 2013)
•R&D consortia (Muller-Seitz & Sydow, 2013)̈
Best practice seems very particularistic to the
setting
36. Recent trends in OI research
• Linking to established theory
• Greater precision of constructs
• Better measurement
• Better understanding of performance
• Different levels of analysis
• Role of appropriability
• Nonprofit actors and motivations
See Vanhaverbeke et al (2014), West et al (2014)
also http://bit.ly/1v2Gf7
37. 2014: new OI publications
• Re se arch Po licy special issue (June
2014)
- Chesbrough, Salter, Vanhaverbeke & West,
guest editors
- 10 articles
- See http://bit.ly/openinno2013
• O pe n Inno vatio n: Ne w Fro ntie rs &
Applicatio ns (Oxford)
- Chesbrough, Vanhaverbeke & West, eds.
- 15 chapters
- See http://bit.ly/NFOI2014
Google Amgen license cancer therapy: Kite Pharma (Jan 2015), BioVex (Jan 2011), Immunomedics (2000)
Also, the other counterpoint is the vertically integrated model, where in order to do anything, you have to do everything.
The open innovation model emphasizes flexibility in a firm’s innovation strategy:
The best source of innovation may be outside the firm (arrows going in)
The best market for an innovation may be outside the firm (arrows going out)
The importance of flexibility. Span firm boundaries. Can bring in technology at any point in the product development process.
Major goal: if firm is fighting false positives (extra cautious), you will get lots of false negatives (Chesbrough 2006). Make sure you find a way to monetize or otherwise find a path to market for these false negatives.
A lot of people when they think about open innovation they only think about the inbound mode; most of the research is about inbound
15 highly cited, with 100+ Google Scholar cites. 3 books and 1 chapter by Chesbrough
4-phase model
1. Searching (where): Sourcing, Brokerage , Limits, University research, User innovation
2. Enabling process/mechanisms (how): Contests, Intermediaries , Toolkits, PlatformsCrowdsourcing
3. Filtering (which): Gatekeepers , Technology scouts, Technology brokering
4. Acquiring: Incentives to share, Contracting, Nature of the innovation
Absorptive capacity: 80/280 articles
Chesbrough and Rivette & Klein’s Rembrandts in the Attic, IP licensing is going up; Issue of what, why and how: descriptive, causal and normative.
At least 6 OI-related papers on technology sourcing have been retracted: SMJ, Org Science, Research Policy, Strategic Organization, Industrial and Corporate Change. Google Open Innovation retraction to read all about it.