Open innovation

Competency Group: Business

Type: Process

Description: According to Henry Chesbrough, the man that coined the term, "Open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology." With knowledge now widely distributed, companies cannot rely entirely on their own research, but should acquire inventions or intellectual property from other companies when it advances the business model.

Citation for Description: Open innovation. (2011). Retrieved from Wikipedia, http://en.wikipedia.org/wiki/Open_innovation.

Units: Competitive edge

Advantages: Open innovation can allow companies to avoid "reinventing the wheel". By observing what other companies are doing, and perhaps outsourcing, it is possible to save a lot of money.

Limitations: Can be relatively expensive if a company is inexperienced in the process.

Target Audience: Top management, Marketing, R&D

Relevant to Universal Design: Yes

Stages and Steps: 1.1, 1.2, 1.3

Free Resource: De la Mata, Guadalupe. (2013). List of Open Innovation resources, tools, books and more. Retrieved from: http://innovationforsocialchange.org/list-of-open-innovation-resources-tool-books-and-more/?lang=en