Open innovation is a term promoted by Henry Chesbrough, a professor and executive director at the Center for Open Innovation at the University of California, Berkeley, in his book Open Innovation: The new imperative for creating and profiting from technology, though the idea and discussion about some consequences (especially the interfirm cooperation in R&D) date back at least to the 60s. The concept is related to user innovation, cumulative innovation, know-how trading, mass innovation and distributed innovation.
“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” or "Innovating with partners by sharing risk and sharing reward.". The boundaries between a firm and its environment have become more permeable; innovations can easily transfer inward and outward. 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.e. patents) from other companies. In addition, internal inventions not being used in a firm's business should be taken outside the company (e.g. through licensing, joint ventures or spin-offs).
Read more about Open Innovation: Closed Versus Open Innovation, Open Source Versus Open Innovation
Famous quotes containing the words open and/or innovation:
“Luxury, then is a way of
being ignorant, comfortably
An approach to the open market
of least information.”
—Imamu Amiri Baraka (b. 1934)
“Both cultures encourage innovation and experimentation, but are likely to reject the innovator if his innovation is not accepted by audiences. High culture experiments that are rejected by audiences in the creator’s lifetime may, however, become classics in another era, whereas popular culture experiments are forgotten if not immediately successful. Even so, in both cultures innovation is rare, although in high culture it is celebrated and in popular culture it is taken for granted.”
—Herbert J. Gans (b. 1927)