What is Open Innovation?

MAPPING Awareness Campaign

12 Feb 201804:11

Summary

TLDRInnovation is key to competitiveness, with closed innovation being internally focused and facing challenges like high costs and slow progress. Open innovation, in contrast, encourages the exchange of ideas and knowledge through partnerships, leveraging external solutions to enhance a company's innovation capabilities. It involves strategic IP management and can lead to reduced costs, increased market differentiation, and new revenue streams, fostering both business success and social advancement.

Takeaways

🚀 **Innovation Drives Growth**: The script emphasizes that innovation is a key driver in every industry, and businesses must constantly innovate to stay competitive.
🔄 **Consequence of Stagnation**: Companies that do not innovate risk becoming outdated, which hinders growth and the ability to seize new opportunities.
🔒 **Closed Innovation**: Traditional innovation occurs within a company's R&D department, with complete control over the process but at the cost of high investment and limited external input.
💡 **Shortcomings of Closed Innovation**: It involves significant costs for internal R&D, high patent costs, slow innovation, and a limited market share with increased risk.
🌐 **Open Innovation Concept**: A newer approach that allows for the free flow of knowledge and ideas, benefiting from external solutions while still protecting IP rights.
🤝 **Misunderstandings of Open Innovation**: Clarifies common misconceptions about open innovation, such as it being free or without IP rights, which are incorrect.
📚 **Exchange of Ideas**: Open innovation involves exchanging knowledge between business partners, customers, universities, and public institutions, facilitated by legal instruments like licensing agreements.
🔄 **Models of Open Innovation**: Describes three models of open innovation: outside-in, inside-out, and coupled, each with different approaches to leveraging external and internal knowledge.
🌟 **Coupled Open Innovation**: A model that combines outside-in and inside-out approaches, often involving joint development and sharing of intellectual property to create new assets.
💼 **Open Innovation Culture**: Promotes a culture of transparency and collaboration, known as the 'cards on the table' approach, fostering a more connected and innovative environment.
📈 **Benefits of Open Innovation**: Outlines the advantages of open innovation, such as reduced research costs, increased market differentiation, and the creation of new revenue streams.

Q & A

What is the significance of innovation in today's business environment?
-Innovation is a driving force in every industry, crucial for the competitiveness of businesses. Without constant innovation, a company risks becoming outdated and losing opportunities for growth.
What are the two types of innovation mentioned in the script?
-The two types of innovation mentioned are closed innovation and open innovation.
What is closed innovation and what are its limitations?
-Closed innovation is achieved within a company's own research and development department, with complete control over the innovation process. Limitations include large investments, high patent costs, slow innovation, limited market share, and higher risk due to long-term planning.
What is open innovation and how does it differ from closed innovation?
-Open innovation involves the free flow of internal knowledge and external solutions. It differs from closed innovation by allowing the exchange of ideas and knowledge with external partners, rather than keeping everything in-house.
What are some common misconceptions about open innovation?
-Common misconceptions include the belief that open innovation means it's open to everyone for free, or that it's an IP-free zone. In reality, it involves strategic IP management and legal agreements such as licensing.
What are the general models of open innovation mentioned in the script?
-The general models of open innovation are outside-in, inside-out, and coupled open innovation.
How does outside-in open innovation work?
-Outside-in open innovation draws on external knowledge from the business and science environment to improve an organization's own innovation performance.
What is inside-out open innovation and what does it involve?
-Inside-out open innovation involves sharing in-house knowledge with the external environment to add value to the organization. This can include out-licensing, transfers of rights, promoting spin-offs, and turning to open-source.
What is coupled open innovation and how is it practiced?
-Coupled open innovation combines outside-in and inside-out models, often through joint development of new knowledge in collaborative partnerships where partners share existing intellectual property to create new joint ownership.
What are the benefits of adopting an open innovation culture?
-Adopting an open innovation culture can reduce research costs, increase market differentiation, and create new revenue streams, leading to greater success for both business and social advancement.
How can one learn more about the mapping project mentioned in the script?
-For more information about the mapping project, one can visit the site provided at the end of the script.

Outlines

00:00

🚀 The Necessity of Innovation

This paragraph introduces the critical role of innovation in today's competitive business environment. It emphasizes that companies must continuously innovate to stay relevant and grow. The traditional approach to innovation, known as 'closed innovation,' is described as being internally focused within a company's R&D department. However, this method has several drawbacks, including high costs, slow processes, and limited market share. The paragraph also introduces the concept of 'open innovation,' which is a newer approach that encourages the sharing of knowledge and ideas beyond the company's boundaries.

Mindmap

Keywords

💡Innovation

Innovation refers to the process of translating an idea or invention into a good or service that creates value or for which customers will pay. In the context of the video, innovation is presented as a crucial driving force in every industry, emphasizing its importance for business competitiveness and growth. The script mentions that without constant innovation, a company risks becoming outdated and losing opportunities.

💡Closed Innovation

Closed innovation is a traditional approach where an organization relies solely on its internal research and development department to create new ideas and products. It is characterized by the organization's complete control over the innovation process and keeping developed intellectual property (IP) internal. The video script points out the shortcomings of closed innovation, such as high costs, slow processes, and limited market share.

💡Open Innovation

Open innovation is a concept that opposes closed innovation by allowing the free flow of knowledge within and outside an organization, benefiting from external innovative solutions. It is based on the exchange of knowledge and ideas between various entities like business partners, customers, universities, and public institutions. The video script clarifies misconceptions about open innovation and highlights its strategic importance for IP management and business growth.

💡Intellectual Property (IP)

Intellectual property refers to creations of the mind, such as inventions, literary and artistic works, designs, and symbols, names, images, and phrases used in commerce. In the video, IP is central to both closed and open innovation processes, as it secures the rights to new ideas and inventions. The script discusses how IP rights can be shared or licensed in the context of open innovation.

💡Research and Development (R&D)

Research and development is the process of creating new ideas, products, or services through scientific research. In the video, R&D is mentioned as the traditional method of innovation within a company's own department. It is associated with closed innovation, where the company invests heavily in its internal capabilities.

💡Patents

A patent is a form of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period. The video script discusses the high costs of patents as part of the closed innovation process and how they can be managed strategically in open innovation.

💡Licensing Agreements

A licensing agreement is a legal contract that allows one party to use another party's intellectual property under certain conditions. In the context of open innovation, the video script explains that licensing agreements are used to allocate rights and facilitate the exchange of intellectual assets between different actors.

💡Inside Out Open Innovation

Inside out open innovation involves sharing an organization's existing in-house knowledge with the external environment to add value. The video script describes this as a way to not only license out and transfer rights but also to promote spin-offs and contribute to open-source projects.

💡Outside In Open Innovation

Outside in open innovation is the process of drawing on external knowledge provided by the business and science environment to improve an organization's own innovation performance. The video script positions this as a way to incorporate external ideas and solutions to enhance innovation.

💡Coupled Open Innovation

Coupled open innovation combines outside in and inside out approaches, often involving joint development of new knowledge through collaborative partnerships. The video script explains that this can take the form of joint research, consortiums, or joint venture agreements, where partners share their existing intellectual property to create new joint ownership.

💡Open Innovation Culture

The open innovation culture, also known as the 'cards on the table' approach, is a mindset that embraces collaboration and transparency in the innovation process. The video script highlights this culture as a way to reduce research costs, increase market differentiation, and create new revenue streams, contributing to both business success and social advancement.

Highlights

Innovation is a driving power in every industry, crucial for business competitiveness.

Companies not innovating are getting outdated, affecting growth and opportunity acquisition.

There are two types of innovation: closed and open innovation.

Closed innovation is conducted within a company's R&D department with complete control over the process.

Shortcomings of closed innovation include high costs, slow process, and limited market share.

Open innovation allows the free flow of knowledge and benefits from external solutions.

Misunderstandings about open innovation include it being free or IP-free, which are incorrect.

Open innovation involves exchanging knowledge and ideas with various stakeholders.

Legal instruments like licensing agreements facilitate secure knowledge sharing in open innovation.

Open innovation models include outside-in, inside-out, and coupled models.

Outside-in model draws on external knowledge to improve a company's innovation performance.

Inside-out model shares in-house knowledge externally to add value to the organization.

Coupled model combines outside-in and inside-out approaches through collaborative partnerships.

Open innovation culture is known as the 'cards on the table' approach, fostering a more connected world.

Open innovation reduces research costs, increases market differentiation, and creates new revenue streams.

It is a new way to achieve greater success for both business and social advancement.

The mapping project focuses on these questions for more detailed information.