Open Innovation Defined
What would you guess is the initially position of management any time you suggest you'll want to license your patents to competitors, share your under-utilized trade secrets with threatening startups, and investigate the possibilities of collaboration with your cousins in aligned segments? Probably the most probable response is a quick "surely that you are mad" as leaders appear at you with that slight unnerving expression you get when you've performed one thing which is not quite socially proper.
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There's, even so, an emerging movement within the innovation space called Open Innovation which suggests you do just this. The thinking is that if there is certainly unused intellectual property or other uniqueness in your organization, the most beneficial financial benefits are obtained by licensing it to competitors who may well make use of it, rather than letting it sit idle, and unprofitable. And, conversely, by actively seeking out competitors which have something worthwhile for your small business and reaching accommodations with them to have you access.
Open Innovation is one of the ramifications with the Innovation Economy which can be primarily based around the premise that competitive advantage derives from how effectively you use know-how, not what know-how you might have. The understanding in the potential to utilize know-how properly in a particular trouble space is actually a tough to copy benefit that requires investment, development, and in most cases, sustained effort over a long period of time. For this reason it can be a supply of competitive benefit.
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Open Innovation may be the present de-rigor fashionable enterprise model amongst innovators in quite a few industries. It is actually particularly well-liked in industries exactly where products don't have pretty great levels of differentiation, like fast moving customer goods. It is equally nicely adopted for industries where the items are very differentiated, like aerospace.
