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Why a Company Should Use a Strategy Like Open Innovation?

Open Innovation

The term “Open Innovation” was originated in the year 2003 in Harvard Business School Press book written by Henry Chesbrough, based on his research on the innovation practicles of multinational companies.

The term “Open Innovation” sets a new example for the industrial innovation in the 21st century in which companies cannot afford to depend only on their own research but should buy or license processes or inventions from other companies. Except this, unused internal invention of a firm is taken outside the company. This idea is clearly a contrast to the closed innovation process, in which most of the firms operated prior to 2nd World War.

Actually, Open Innovation is the business model of the firm that describes which external information to bring inside and which internal information to take outside. It is one of the strategies companies are employing to optimize the utilization of their creative resources and for developing innovative competence that is global in nature.

The sprit of Open Innovation lies in using both inflow and outflow of knowledge. An organization can share it’s internal research and development and creative ideas with some external companies because the companies think that information should be shared for it’s ultimate utilization which adds an extra value to their creative plans and information.

Henry Chesbrough : Video about the Basics of Open Innovation

In today’s technologically advanced and interconnected world there is a very little chance for the experts of various fields to participate in the advancement of numerous critical problems and needs that affect human society. The two most valuable things that are missing from our system today is in fact creativity and intellect, not access to financial means. And I think, for many experts, lending their expertise in support of various critical problems or efforts as well as challenges about which they care most are the most satisfying.

Now a day there are many such experts around the World willing and able to lend their knowledge and creative talents for solving the most critical challenges of our time. Among them some will engage them to make a different solution and some will simply for making money. But they all are changing the way of invention from corporate research and product development to improving the condition of our society.

While searching for the information regarding Open Innovation and Open Innovation Community the website of Philoptima – an open innovation marketplace attracts me. Here I found that this organization connects grant makers with various experts and researchers to produce solutions to many critical problems of present day. In my opinion the most interesting thing of this site is that the organization offers prizes for best solutions of various problems.

This is surely going to attract the experts who want to make a different solution to the problem as well as the experts who simply want to make some money by selling their expertise and both of them will obviously serve our society by solving the hardest problems of today and improving mankind. And I believe that it is the best utility of the new concept Open Innovation.

About Amy Watson