Showing papers on "Open innovation published in 2010"

The future of open innovation

Abstract: Institutional openness is becoming increasingly popular in practice and academia: open innovation, open R&D and open business models. Our special issue builds on the concepts, underlying assumptions and implications discussed in two previous R&D Management special issues (2006, 2009). This overview indicates nine perspectives needed to develop an open innovation theory more fully. It also assesses some of the recent evidence that has come to light about open innovation, in theory and in practice.

Marginality and Problem-Solving Effectiveness in Broadcast Search

Abstract: We examine who the winners are in science problem-solving contests characterized by open broadcast of problem information, self-selection of external solvers to discrete problems from the laboratories of large research and development intensive companies, and blind review of solution submissions. Analyzing a unique data set of 166 science challenges involving over 12,000 scientists revealed that technical and social marginality, being a source of different perspectives and heuristics, plays an important role in explaining individual success in problem solving. The provision of a winning solution was positively related to increasing distance between the solver's field of technical expertise and the focal field of the problem. Female solvers---known to be in the “outer circle” of the scientific establishment---performed significantly better than men in developing successful solutions. Our findings contribute to the emerging literature on open and distributed innovation by demonstrating the value of openness, at least narrowly defined by disclosing problems, in removing barriers to entry to nonobvious individuals. We also contribute to the knowledge-based theory of the firm by showing the effectiveness of a market mechanism to draw out knowledge from diverse external sources to solve internal problems.

The open book of social innovation

Abstract: This volume describes the hundreds of methods and tools for innovation being used across the world, as a first step to developing a knowledge base.The Open Book presents a varied, vibrant picture of social innovation in practice and demonstrates the vitality of this rapidly emerging economy. It demonstrates the diversity of initiatives being led by entrepreneurs and campaigners, organisations and movements worldwide. It is the result of a major collaboration between NESTA (the National Endowment for Science, Technology and the Arts) and the Young Foundation – two UK organisations that are committed to the role that social innovation can play in addressing some of the most pressing issues of our time.

Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era

Abstract: Acknowledgments xi Introduction: Open Services and Innovation 1 1 The Case for Open Services Innovation 7 Part 1: A Framework to Spur Innovation and Growth 29 2 Think of Your Business as a Services Business 31 3 Co-Create with Your Customers 53 4 Extend Services Innovation Outside Your Organization 68 5 Transform Your BusinessModel with Services 89 Part 2: Open Services Innovation in Practice 113 6 Open Services Innovation in Larger Companies 115 7 Open Services Innovation in Smaller Companies 133 8 Open Services Innovation for Services Businesses 155 9 Open Services Innovation in Emerging Economies 169 10 Open Services Innovation: The Way Forward 188 Notes 203 The Author 230 Index 232

Open Versus Closed Innovation: A Model of Discovery and Divergence

Abstract: When is open innovation superior to closed innovation? Through a formal simulation model we show that an open approach to innovation allows the firm to discover combinations of product features that would be hard to envision under integration. However, when partners have divergent goals, open innovation restricts the firm's ability to establish the product's technological trajectory. The resolution of the trade-off between benefits of discovery and costs of divergence determines the best approach to innovation.

Participatory design and "democratizing innovation"

Abstract: Participatory design has become increasingly engaged in public spheres and everyday life and is no longer solely concerned with the workplace. This is not only a shift from work oriented productive activities to leisure and pleasurable engagements, but also a new milieu for production and innovation and entails a reorientation from "democracy at work" to "democratic innovation". What democratic innovation entails is currently defined by management and innovation research, which claims that innovation has been democratized through easy access to production tools and lead-users as the new experts driving innovation. We sketch an alternative "democratizing innovation" practice more in line with the original visions of participatory design based on our experience of running Malmo Living Labs - an open innovation milieu where new constellations, issues and ideas evolve from bottom-up long-term collaborations amongst diverse stakeholders. Two cases and controversial matters of concern are discussed. The fruitfulness of the concepts "Things" (as opposed to objects), "infrastructuring" (as opposed to projects) and "agonistic public spaces" (as opposed to consensual decision-making) are explored in relation to participatory innovation practices and democracy.

A Reflective Review of Disruptive Innovation Theory

Abstract: Disruptive Innovation Theory has created a significant impact on management practices and aroused plenty of rich debate within academia. Copious as the studies are, the scattered and conflicting nature of the literature on disruptive innovation in the last decade may pose a state of ambiguity for future research, thus necessitating a comprehensive review at this juncture. This paper first clarifies the basic concept and potential misinterpretations of the theory. Believing in the predictive value of the theory on firm performance, the authors then summarize and critique the research on how to enable potential disruptive innovation from internal, external, marketing and technology perspectives. The different perspectives inspired the authors to identify a number of key research directions within the disruptive innovation research domain. Potential future research is also briefly discussed by integrating disruptive innovation with other research domains, such as open innovation. Finally, in addition to theoretical contributions, the authors make practical contributions by outlining a series of potential inhibitors and enablers of disruptive innovation as managerial ‘take-aways’.

Exploring open search strategies and perceived innovation performance from the perspective of inter‐organizational knowledge flows

Abstract: Based on theories of inter-organizational knowledge flows and organizational learning, we argue that intensively accessing knowledge from a limited number of external channels, i.e., open search depth, can facilitate the innovating company's incremental innovation performance. We also argue that accessing knowledge from a broad range of external channels, i.e., open search breadth, can enhance the innovating firm's radical innovation performance. Using hierarchical regressions to analyze survey data collected from 184 Taiwanese electronic product manufacturers, we found that open search depth is positively related to the innovating firm's incremental innovation performance, and that open search breadth is positively related to radical innovation performance. As our results differ from those of previous studies, we provide a possible explanation for the discrepancy. Examining the effect of open search strategy from a theoretical angle not yet explored before, our findings can contribute to both scholarly and practitioner knowledge of open innovation.

Unravelling the process from Closed to Open Innovation: evidence from mature, asset-intensive industries

Abstract: Open Innovation has been one of the most-debated topics in management research in the last decade. Although our understanding of this management paradigm has significantly improved over the last few years, a number of important questions are still unanswered. In particular, an issue that deserves further attention is the anatomy of the organizational change process through which a firm evolves from being a Closed to an Open Innovator. The paper represents a first step in overcoming this limitation. In particular, adopting a longitudinal, firm-level perspective, it addresses the following question: which changes in a firm's organizational structures and management systems does the shift from Closed to Open Innovation entail? In answering this question, the paper uses established concepts in organizational change research to look into a rich empirical basis that documents the adoption of Open Innovation by four Italian firms operating in mature, asset-intensive industries. The results show that the journey from Closed to Open Innovation involves four main dimensions of the firm's organization, i.e. inter-organizational networks, organizational structures, evaluation processes and knowledge management systems, along which change could be managed and stimulated.

Creative imitation: exploring the case of cross-industry innovation

Abstract: In cross-industry innovation, already existing solutions from other industries are creatively imitated and retranslated to meet the needs of the company's current market or products. Such solutions can be technologies, patents, specific knowledge, capabilities, business processes, general principles, or whole business models. Innovations systematically created in a cross-industry context are a new phenomenon for theory and practice in respect of an open innovation approach. While the cognitive distance between the acquired knowledge and the problem to be solved was regarded as a counterproductive factor in older research, recent theory regards it as positively related to innovation performance. Following the latest theory, we examine 25 cross-industry cases to ascertain cognitive distance's influence on innovation performance. Our study reveals that there is no direct correlation between a higher or closer distance and a more explorative or exploitative outcome.

Motivating and supporting collaboration in open innovation

Abstract: Purpose – The purpose of this paper is to explore collaboration in open innovation (OI) communities. The paper focuses on the following two research problems: how can users be motivated to collaborate in OI communities and what kind of tools and methods can support collaboration in OI communities?Design/methodology/approach – The exploratory case study includes three innovation intermediaries originated in three different countries: France, The Netherlands and Finland. The primary data source consists of the open‐ended questions posted to the maintainers and users by e‐mail. The data include five responses from the maintainers and 12 responses from the users. The secondary source is the internet document review. The classification of the factors in the preliminary framework is derived from reading and rereading the answers of the respondents until the themes started emerging from the data. Thereafter, the data are coded according to the chosen themes.Findings – Results suggest that monetary rewards are no...

Managerial challenges in open innovation: a study of innovation intermediation in the chemical industry: Managerial challenges in open innovation

Abstract: The current open innovation literature needs to be complemented with work on the managerial challenges faced by companies working with an innovation intermediary to solve research and development (RD (2) selecting the right problems; and (3) formulating problems so as to enable novel solutions Based on the knowledge management literature, we explain how these challenges arise out of scientists' different work practices in internal vs external R&D problem solving and we identify and discuss a number of remedies to these challenges

The Open Innovation Paradox: Knowledge Sharing and Protection in R&D Collaborations

Abstract: Purpose of this paper: This paper investigates the paradox that arises when firms simultaneously share and protect their knowledge in an alliance with other organizations. The goal of this paper therefore is to explore this tension field in such a coupled open innovation process and to identify which strategies can be developed to cope with this tension. Design/methodology/approach: The study was initially guided by a literature review and exploratory interviews, and it ultimately develops an inductive framework based on a multiple case study approach. The paper presents eight cases of a focal firm involved in a particular R&D collaboration. The case studies are based on a variety of data sources, including a number of semi-structured interviews. Findings: This paper unravels the tension field of knowledge sharing and protection in R&D collaborations, with the knowledge characteristics at the core and with the knowledge embodiment and relational dimension as mediating factors. These forces are in turn influenced by the collaboration characteristics and environment. Moreover, the case studies show different ways to cope with the tension between knowledge sharing and protection, such as an open knowledge exchange strategy and a layered collaboration scheme with inner and outer members. Licensing is moreover presented as a concrete way to implement such coping strategies. Originality/value: This paper provides a holistic perspective on the knowledge paradox in R&D collaborations as a coupled process of open innovation. It moreover describes two concrete strategies to cope with the tension field as well as the role and implications of licensing as a particular mechanism to overcome the open innovation paradox.

Open and closed innovation – different innovation cultures for different strategies

Abstract: Although strategies, processes, or the role of business models have been addressed in the open innovation literature, the people side of the equation – i.e., the underlying innovation culture – has been neglected so far. Whereas cultural requirements of open innovation have been mentioned, such as the need to overcome the not-invented-here (NIH) syndrome, there exists, to the best of our knowledge, no study that empirically examines open innovation cultures. We attempt to fill this research gap by focusing on innovation cultures within three business units (two follow a closed and one follows an open innovation approach) of a leading multinational company within the specialty chemicals industry. Employing an overall sample of 109 respondents, we focus on the cultural dimensions of NIH syndrome, risk-taking, and management support of innovative behaviour and provide first evidence of cultural differences between Open and Closed Innovation units.

Open Innovation and the Stage-Gate Process: A Revised Model for New Product Development:

Abstract: This article explores how firms can benefit from opening up the new product development process by integrating the principles of open innovation with the Stage-Gate process. It examines the potential opportunities of employing the principles of both inbound and outbound open innovation within new product development at a firm in the upstream oil & gas industry. A practitioner-oriented work model, named the open Stage-Gate model, can exploit the advantages of “openness. “This model allows explicit consideration of import and export of know-how and technology through gate evaluations and also enables firms to continuously assess their core capabilities and business model. The application of this model can assist firms in capturing value from both internal and external technology exploitation in increasingly open innovation processes.

The influence of scope, depth, and orientation of external technology sources on the innovative performance of Chinese firms

Abstract: It is commonly accepted nowadays that external knowledge sources are important for firms’ innovative performance. However, it is still not clear, what dimensions of firms’ external knowledge search strategy are crucial in determining their innovation success and whether these search strategies are contingent on different innovation modes. In this study, we analyze how the innovative performance is affected by the scope, depth, and orientation of firms’ external search strategies. We apply this analysis to firms using STI (science, technology and innovation) and DUI (doing, using and interacting) innovation modes. Based on a survey among firms in China, we find that greater scope and depth of openness for both innovation modes improves innovative performance indicating that open innovation is also relevant beyond science and technology based innovation. Furthermore, we find that decreasing returns in external search strategies, suggested by Laursen and Salter (2006), are not always present and are contingent on the innovation modes. Next, we find that the type of external partners (we label it “orientation of openness”) is crucial in explaining innovative performance and that firms using DUI or STI innovation modes have different sets of relevant innovation partners. This shows that the orientation of openness is an important dimension – in addition to the scope and depth of openness. As respondents are located in China, this study provides evidence that open innovation is also relevant in developing countries.

Enabling open innovation in small- and medium-sized enterprises: how to find alternative applications for your technologies

Abstract: A critical success factor in the practice of Open Innovation is the timely identification of opportunities for out-licensing a firm's technologies outside its core business. This can be particularly challenging for small- and medium-sized enterprise (SMEs), because of their focussed business portfolio, specialized knowledge basis, and limited financial resources that can be devoted to innovation activities. The paper illustrates a quick and easy-to-use methodology for the identification of viable opportunities for out-licensing a firm's technologies outside its core business. The method uses established TRIZ instruments in combination with non-financial weighting and ranking techniques and portfolio management tools. It has been developed by the authors in collaboration with an Italian SME working in the packaging industry.

Innovation, Intellectual Property, and Economic Growth

Abstract: What drives innovation? How does it contribute to the growth of firms, industries, and economies? And do intellectual property rights help or hurt innovation and growth? Uniquely combining microeconomics, macroeconomics, and theory with empirical analysis drawn from the United States and Europe, this book introduces graduate students and advanced undergraduates to the complex process of innovation. By addressing all the major dimensions of innovation in a single text, Christine Greenhalgh and Mark Rogers are able to show how outcomes at the microlevel feed through to the macro-outcomes that in turn determine personal incomes and job opportunities. In four sections, this textbook comprehensively addresses the nature of innovation and intellectual property, the microeconomics and macroeconomics of innovation, and economic policy at the firm and macroeconomic levels. Among the topics fully explored are the role of intellectual property in creating incentives to innovate; the social returns of innovation; the creation and destruction of jobs by innovation; whether more or fewer intellectual property rights would give firms better incentives to innovate; and the contentious issues surrounding international treaties on intellectual property.

Early supplier integration: the dual role of purchasing in new product development

Abstract: Interest in early supplier integration in new product development (NPD) has increased as an open innovation approach has become more common in firms. To support supplier integration, the purchasing function of a firm can assume a new ‘dual’ role: contributing to NPD while also managing overall costs. Previous research has offered few insights into how the purchasing function should best be organised so that it will fulfil this dual role. This paper reports on the results of a consortial benchmarking study in which an industry–academic consortium visited and analysed six best-practice firms. The findings describe how innovative firms organise their purchasing function, distinguishing between ‘advanced sourcing’ and ‘life-cycle sourcing’ units. The results include the tools that these firms use, such as regular innovation meetings with suppliers and technology roadmaps linking firm strategy, innovation strategy and sourcing strategies. The paper also recommends that researchers shift from a narrow focus on a single project to a broader consideration of supplier and organisational issues in NPD.

Identification of competencies for professionals in open innovation teams

Abstract: In the open innovation management literature, it is widely acknowledged that individuals play a crucial role in collaborative knowledge creation processes. However, the literature tends not to explore the human side of open innovation teams. The present article therefore examines the competencies that professionals need for working in open innovation teams (specific but not necessarily unique to open innovation) and to cope with the challenges they face. A qualitative study consisting of explorative interviews and focus group discussions was conducted, resulting in a competence profile for open innovation professionals. The profile adds a new perspective to the field of open innovation management by focusing on how individuals involved in open innovation teams can enhance open innovation success. It reveals, among other things, how professionals can generate new knowledge, build trust, and deal with low reciprocal commitment in open innovation teams. Especially, brokering solutions and being socially competent seem to be important for open innovation professionals. Companies should focus on these competencies when supporting their professionals in open innovation teams.

Citizensourcing: Applying the Concept of Open Innovation to the Public Sector

Abstract: Theories of innovation suggest the process of product and service development is becoming more open, placing more emphasis on external knowledge and involving a wide range of external actors to achieve and sustain innovation. The growing success of open innovation practices in many firms raises the question of whether these principles can be transferred for the reinventing of public sector organizations. Going beyond a technocratic e-government paradigm, but with the support of Internet technology, the authors present a structural overview of how external collaboration and innovation between citizens and public administrations can offer new ways of citizen integration and participation, enhancing public value creation and even the political decision-making process.

Open knowledge: challenges and facts

Abstract: Purpose – The purpose of this paper is to open the special issue of Online Information Review on open knowledge management in higher education. Its aim is to review the concept and extension of the movement or philosophy of open knowledge in universities and higher education institutions.Design/methodology/approach – The approach follows the reference model used by the University of Salamanca (Spain) to promote open knowledge in the institution through its Open Knowledge Office. This model comprises four areas: free software, open educational content and cultural dissemination, open science, and open innovation.Findings – For each of the four areas mentioned above, milestones and the most significant projects are presented, showing how they are promoting publication and information transmission in an open environment, without restrictions and favouring knowledge dissemination in all fields.Originality/value – Open knowledge is an approach which, although somewhat controversial, is growing relentlessly as ...

Open innovation in the automotive industry

Abstract: Automotive Original Equipment Manufacturers (OEM) have historically invested in their own research and development (R&D) to boost their innovativeness. Because of an increasing innovation and cost pressure, the automotive industry needs to look outside their own boundaries to escape from this productivity dilemma. While there is a tendency to look outside for external sources to increase the innovativeness, there are hardly any external paths to market outside the current business yet. Our study shows that Open Innovation proves to be more adequate in the attempt to achieve a better R&D productivity for companies in the automotive industry than a closed innovation model.