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Open Innovation

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What is open innovation? (Wikipedia)
Open Innovation is a term promoted by Henry Chesbrough, a professor and executive director at the Center for Open Innovation at Berkeley. The concept is related to (but distinct from) user innovation, cumulative innovation and distributed innovation.

The central idea behind open innovation is that in a world of widely distributed knowledge, companies cannot afford to rely entirely on their own research, but should instead buy or license processes or inventions (e.g. patents) from other companies. In addition, internal inventions not being used in a firm’s business should be taken outside the company (e.g., through licensing, joint ventures, spin-offs). In contrast, closed innovation refers to processes that limit the use of internal knowledge within a company and make little or no use of external knowledge. Some companies promoting open innovation include Procter & Gamble, Innovation Exchange, NineSigma, InnoCentive, yet2.com, IBM, Philoptima, and Nerac.

Dwayne Spradlin is Chief Executive officer at InnoCentive wrote a Change This Manifesto – Open Innovation: Your On-Ramp to Creating a Better Product [PDF]

To Quote:

For most companies the process of creating new, innovative products and getting them out the door starts with tapping the most talented members of the R&D team. Once they have arrived at an idea and decided it is feasible, R&D moves to determining the most effective way to develop it and bring it to market. It sounds logical; but what if there was a way to reinvent the process and bring better products to market faster and at a lower cost?

Written by anol

November 6th, 2008 at 12:06 am

Posted in Big Picture

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