Open Innovation is a term promoted by Henry Chesbrough, a professor and executive director at the Center for Open Innovation at Berkeley. Henry Chesbrough coined the term Open Innovation and is the author of Open Innovation The New Imperative for Creating and Profiting from Technology (HBS Press 2003 The University of California Berkeley (also referred to as Cal, Berkeley and UC Berkeley) is a major research university located in Berkeley The concept is related to (but distinct from) user innovation, cumulative innovation and distributed innovation. User innovation refers to Innovations developed by Consumers and End users rather than Manufacturers Eric von Hippel of MIT Open Innovation is a term promoted by Henry Chesbrough, a professor and executive director at the Center for Open Innovation at Berkeley.
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 (i. Research is defined as Human activity based on Intellectual application in the investigation of Matter. e. patents) from other companies. A patent is a set of Exclusive rights granted by a State to an inventor or his assignee for a fixed period of time in exchange for a disclosure of an 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). A joint venture (often abbreviated JV) is an entity formed between two or more parties to undertake economic activity together A spin-off (or spinoff) is a new Organization or Entity formed by a split from a larger one such as a Television series based on a pre-existing 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 [1] ,NineSigma, InnoCentive, and IBM. Procter & Gamble Co ( P&G,) is a Fortune 500, American global corporation based in Cincinnati Ohio, that manufactures a wide InnoCentive is an " Open innovation " company that takes Research and development problems in a broad range of domains such as Engineering, International Business Machines Corporation abbreviated IBM and nicknamed "Big Blue", is a multinational Computer Technology
Prior to World War II, closed innovation was the paradigm in which most firms operated. World War II, or the Second World War, (often abbreviated WWII) was a global military conflict which involved a majority of the world's nations, including The word paradigm ( Greek:παράδειγμα (paradigmacomposite from para- and the verb δείχνυμι "to show" as a whole -roughly- meaning "example" Most innovating companies kept their discoveries highly secret and made no attempt to assimilate information from outside their own R&D labs. The phrase research and development (also R and D or more often R&D) according to the Organization for Economic Co-operation and Development, refers However, in recent years the world has seen major advances in technology and society which have facilitated the diffusion of information. Not the least of these advances are electronic communication systems, including the internet. The Internet is a global system of interconnected Computer networks Today information can be transferred so easily that it seems impossible to prevent. Thus, the open innovation model states that since firms cannot stop this phenomenon, they must learn to take advantage of it.
It is the business model of the firm that determines what external information to bring inside, and what internal information to take outside. A business model is a term used for a broad range of informal and formal descriptions that are used by enterprises to represent various aspects of its business including its purpose offerings
Contents |
Open source vs. Open Innovation
While open source and open innovation might conflict on patents issues, they are not mutually exclusive, as participating companies can donate their patents to an independent organization, put them in a common pool or grant unlimited license use to anybody. Open source is a development methodology which offers practical accessibility to a product's source (goods and knowledge Hence some open source initiatives can merge the two concepts, this is the case for instance for IBM with its Eclipse platform which IBM is advocating as a case of open innovation, where competing companies are invited to co-operate inside an open innovation network. In Computing, Eclipse is a Software platform comprising extensible Application frameworks tools and a Runtime library for Software [1]
Difference between traditional innovation and open innovation
Open innovation needs a different mindset and company culture than traditional or closed innovation.
| Closed innovation Principles | Open innovation Principles |
|---|---|
| The smart people in our field work for us. | Not all the smart people work for us. We need to work with smart people inside and outside our company. |
| To profit from research and development (R&D), we must discover it, develop it and ship it ourselves. | External R&D can create significant value; internal R&D is needed to claim some portion of that value. |
| If we discover it ourselves, we will get it to market first. | We don't have to originate the research to profit from it. |
| The company that gets an innovation to market first will win. | Building a better business model is better than getting to market first. |
| If we create the most and the best ideas in the industry, we will win. | If we make the best use of internal and external ideas, we will win. |
| We should control our innovation process, so that our competitors don't profit from our ideas. | We should profit from others' use of our innovation process, and we should buy others' intellectual property (IP) whenever it advances our own business model. |
References
- Braun, Viktor R. G. (2007): Barriers to user-innovation & the paradigm of licensing to innovate, Doctoral dissertation: Hamburg University of Technology
- Christensen, Jens Frøslev, Michael Holm Olesen and Jonas Sorth Kjær, (2005). "The industrial dynamics of Open Innovation - Evidence from the transformation of consumer electronics" Research Policy Vol. 34, pp. 1533-1549
- Chesbrough, Henry (2003) Open Innovation: The New Imperative for Creating and Profiting from Technology. Harvard Business School Press, Boston.
- Chesbrough, Henry, Wim Vanhaverbeke, and Joel West, eds. , (2006) Open Innovation: Researching a New Paradigm. Oxford University Press, Oxford.
See also
- Creativity techniques
- Innovation
- List of emerging technologies
- Open research
- User innovation
- Value network
External links
- The Principles of distributed innovationPDF
- Bibliography of open innovation research
- Cumulative, open and user innovation
Dapyx Software network: MP3 Explorer | Ebook Manager | Zenithic