Evolution of open innovation

Evolution of open innovation
by nstrangar|01.08.2018

Fundamentally, open innovation suggests that the benefits firms gain from internal R&D activities have declined and subsequently firms now spend little on R&D; and knowledge and expertise is drawn from a wide range of external resources. It is perceived that the erosion in the strategic advantage of internal R&D might be related to dynamic markets, short product life cycles, increased mobility of knowledge workers and the role of university research in establishing collaborations with industry may prevent the firms to monitor, control and appropriate their R&D-related investments (Laursen, 2006). The central element of the open innovation model is how firms identify, implement and sustain knowledge and ideas of external sources in their innovation processes (Raymond & St-Pierre, 2010).

In contrast to the closed innovation model, knowledge and ideas flows may enter or exit in various ways, from internal research investigations or from partnerships with the public science base and other external players. Technology transfer is achieved through integrating external knowledge with tacit knowledge (technology insourcing) already existing in the firm. Firms can make their way to market in many ways through firm’s own channels, joint ventures, spin-offs or outlicencing whilst they decide for alternative marketing and sales channels. (Chesbrough, 2012) Reflecting on Chesbrough’s model, we can understand open innovation as a form of external orientation for commercializing internal and external ideas that can be realized through transitioning from ‘the not invented here’ syndrome to ‘proud to be found elsewhere’ (Tether & Tajar, 2008; van de Vrande, 2009; Talaga 2009). West and Gallagher (2006) argued that for this transition to occur firm s should consciously integrate external contribution with firm’s capabilities and resources and broadly exploiting these opportunities through known and unknown channels. Laursen and Salter (2006) link this transition with innovative search strategies to shape innovative performance informed by increasing conceptual understandings of innovative search processes.

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