The Ins and Outs of Open Innovation

5 Pages Posted: 1 Jun 2017

See all articles by Raul O. Chao

Raul O. Chao

University of Virginia - Darden School of Business

Abstract

This technical note explores open innovation--initiatives that are executed with organizations or individuals outside the typical boundaries of the R&D organization. Through a broadening of the interpretation of open innovation, the note aims to help managers who are trying to be more open with their innovation initiatives. Understanding what works or what doesn't work in different settings helps answer questions such as these: What types of projects are good candidates for open innovation? What should an open innovation portfolio look like? Or, more generally, how should firms manage open innovation initiatives?

Excerpt

UVA-OM-1495

May 16, 2013

THE INS AND OUTS OF OPEN INNOVATION

The past few decades have seen tremendous growth in “open innovation”—initiatives that are executed with organizations or individuals outside the typical boundaries of the R&D organization. A discussion on open innovation usually begins with references to Henry Chesbrough and his work on the topic. Issues such as technology licensing, intellectual property, joint ventures, and the challenge of managing this type of innovation, which are often at the forefront of the discussion. Recently, however, innovation experts in academia and business have challenged the singular focus on the business models and mechanisms that are often associated with open innovation à-la Chesbrough. Managers tell stories about innovation projects in their organizations that were considered “open,” but not focused on licensing, joint ventures, or other issues typically considered under the realm of open innovation. New topics have emerged, such as social media, users as innovators, crowdsourcing, codevelopment, and distributed innovation, among others.

The purpose of this technical note is to help managers who are trying to be more “open” with their innovation initiatives. Understanding what works or what doesn't work in different settings helps answer questions such as these: What types of projects are good candidates for open innovation? What should an open innovation portfolio look like? Or, more generally, how should firms manage open innovation initiatives?

Why Open Innovation?

. . .

Keywords: Open innovation, innovation, research and development, R&D

Suggested Citation

Chao, Raul O., The Ins and Outs of Open Innovation. Darden Case No. UVA-OM-1495, Available at SSRN: https://ssrn.com/abstract=2975000 or http://dx.doi.org/10.2139/ssrn.2975000

Raul O. Chao (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-982-2681 (Phone)

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