This sectio contains both academic and practice-oreinted artciles. For a full list of academic references on open innovation, please follow this link.
Public Policies for Open Innovation
In a recent report Henry Chesbrough, Wim vanhaverbeke, Jeroen de Jong and Tarmo Kalvet explore how policy makers can enhance and leverage open innovation practices in European economies by aligning labor market policy, education policy, IP-regulation, innovation policy and other policy domains in line with the the rapidly changing needs of firms that innovate in collaboration with research institutes, suppliers, customers, innovation intermediaries, and other partners. The report provides a theoretical perspective, a policy framework and case studies for Belgium, the Netherlands and Estonia. Download the article here:
Building the Web 2.0 Enterprise
Companies are using more Web 2.0 tools and technologies than they were last year, sometimes for more complex business purposes, according to McKinsey's second annual survey on Web 2.0. Companies that are satisfied with their use of these tools are starting to see changes throughout the enterprise.
Download the article here:
The next step in open innovation
The Internet and new social-networking technologies are allowing companies and their customers to interact with unprecedented levels of richness. Some leading organizations are using this opportunity to draw customers into the heart of the product-development process. Cocreating products and services with customers, however, is uncertain territory fraught with challenges and questions-for instance, who owns the resulting intellectual property? Nonetheless, smart companies are now beginning to encourage their customers to help them develop the products and services consumers really want. Read more in this article published in the Mckinsey Quarterly.
Managing Open Innovation - Present Findings and Future Directions
This report aims at giving an overview of the emerging research field of open innovation in a phase that is still very fluid. The purpose of this report is to depict the major tendencies of publications through identifying the main themes in literature and investigating the research frontier. It also aims at discussing potentially important fields of investigation that are still left rather unexplored. This report builds on two main studies. First, a literature overview of the publications on open innovation published in key databases until November 20, 2007 was conducted. However, since the expression was coined as late as 2003, much ongoing research is still not found in the publications. In a second study, nine key researchers in the open innovation field were asked to define the frontier (from the UK, Denmark, France, Germany, Austria and the U.S.) in open innovation research. Their opinions were used as an additional input when trying to identify the future directions for research.
Open Innovation Models and the Role of Knowledge Brokers
In this article, published in the Inside Knowledge magazine of March 2008 (http://www.ikmagazine.com/), Milton Correia de Sousa introduces de concept of knowledge brokers and how these can increase the effectiveness of open innovation processes. The article starts by explaining how the movement from internal R&D to external connect and develop opens the door to companies - large and small - to reach beyond their core competencies to remain competitive in an increasingly complex, uncertain and changing environment. The article further explains how knowledge brokers can act as intelligent change agents that stimulate innovation while keeping focus and creating momentum for action. The article provides also some examples and a case report.
Managing technologies in Research Organization: Framework for Research Surplus Portfolio
In the article by Sari Viskari and Marko Torkelli of Lappeenranta University of Technology, titled "Managing technologies in Research Organization: Framework for Research Surplus Portfolio", the concept of Research Surplus Portfolio (RSP) is constructed based on literature with regards to intellectual capital management and portfolio management. In addition, tools and techniques for the evaluation of surplus technologies are identified. This paper is part of a project to find innovation practices for new business creation in the Nokia Research Center (NRC) and increase its innovative climate.
Smart Spenders: The Global Innovation 1000
A select group of the world’s 1,000 largest corporate R&D spenders perform significantly better than their competitors over a sustained period while spending less on R&D than their industry rivals, according to management consulting firm Booz Allen Hamilton’s second annual global innovation study. The study found that although R&D spending of these 1,000 companies rose last year by more than $20 billion, money simply can’t buy effective innovation. However, a group of 94 “high-leverage innovators,” including Toyota, Apple, Christian Dior, Google and Caterpillar spend less than their competitors on research and development, yet consistently outperform their industry rivals across a broad set of performance measures.
Creation nets: harnessing the potential of open innovation
John Hagel describes in this article the concept of "Creation Nets". These innovation networks are coordinated by a network orchestrator. Also called 'strategic centres', these gatekeepers facilitate knowledge sharing among network members and define governance processes as to minimize free riding in the network. Hence, they coordinate dispute solving and provide guidelines for cooperative behaviour.
http://www.johnhagel.com/creationnets.pdf
Open innovation: symbiotic network. Knowledge circulation and competencies for the benefit of innovation in the Horticulture delta
(W. Maijers, L. Vokurka, R. van Uffelen & P. Ravensbergen )
In recent years the Dutch glasshouse horticulture cluster has undergone major changes within the development fields: market, society and technology. Traditionally the cluster has been supported by a powerful triptych of research, information and education. The removal of this triptych in the early 90's gave rise to the question of what is the most suitable knowledge & innovation network structure for innovation in the horticulture delta. This document contains proposals for the effective steering of knowledge development and for the opening up and transfer of this knowledge so that the horticulture delta can retain and further strengthen its worldwide renown. This document also looks at how the actors in the horticulture cluster can work with developers and translators of knowledge in order to realise this.
Primer on "open innovation:" Principles and practice
(Michael Doherty)
First it was phase-gates, then portfolio management. Now "open" models of innovation are the next major wave in helping companies to take innovation and Product Development to the next level. In this article, the author provides an overview of the principles of open and collaborative innovation, as well as best practices for successfully implementing them in your own company.
Connect and Develop: Inside Procter & Gamble's New Model for Innovation
(Larry Hurston & Nabil Sakkab)
Procter & Gamble has operated one of the greatest research and development operations in corporate history. But as the company grew to a $70 billion enterprise, the global innovation model it devised in the 1980s was not up to the task. CEO A. G. Lafley decided to broaden the horizon by looking at external sources for innovation. P&G's new strategy, connect and develop, uses technology and networks to seek out new ideas for future products. "Connect and develop will become the dominant innovation model in the twenty-first century," according to the authors, both P&G executives. "For most companies, the alternative invent-it-ourselves model is a sure path to diminishing returns."
Creating Success from University Spin-outs
(BVCA, British Venture Capital Association)
The UK private equity and venture capital industry is by far the largest in Europe, accounting for some 52% of the whole market, and second only in size in the world to the US. The UK industry is invested in every sector of the
economy across all regions of the country. The BVCA (British Venture Capital Association) represents the overwhelming number of UK-based private equity and venture capital firms (VCs). This research has shown that there is evidence that university spin-outs are at a disadvantage to their corporate counterparts. The research also suggests that research or products spun out at a later stage – post market validation – have the best chance of success.
New ventures based on open innovation – an empirical analysis of start-up firms in embedded Linux
(M. Gruber & J. Henkel)
An important and intriguing aspect of e-entrepreneurship is the formation of new ventures in the domain of open source software (OSS). Previous research on these ventures has primarily looked at the design of business models, yet has neglected other key questions relating to the management of these firms, despite clear indications that some existing insights on venture management cannot be applied to new ventures in OSS. The purpose of this paper is to explore how three key challenges of venture management – the liabilities of newness and smallness of start-ups and market entry barriers – affect new ventures in OSS.
Partnering for the Future: The case of the METRO Group Future Store Initiative
(Tim Graczewski & Ard-Pieter de Man)
The METRO Group’s Future Store Initiative is a strategic initiative conceived in 2001 and launched in early 2003 that seeks to promote METRO’s corporate strategy of building a highly loyal and highly profitable customer base through a world class, technology service-focused customer experience. The Future Store’s success was dependent upon the active participation of over fifty partner companies from a range of industries (hardware, software, CPG, RFID, etc.).
Value, Valuation, and Valorisation
(D.G. Andriessen)
This paper explores the nature of value and valuation in the context of knowledge valorisation. It does not go into the mathematics and techniques of financial valuation but provides an overview of the underlying concepts of value and valuation. This deeper understanding of what value is and what the difficulties are in estimating it is necessary to be able to do valuation or to judge the results of a valuation.
Patent Management as an Integral Part of Strategizing: The Basics
(Rik van Reekum)
This paper provides background information to a course outline on ‘Strategic IP(R) management’. Together, they are the deliverables from a project under that name and were presented to the KViecongress on the 16th of December, 2005. The course outline is aimed at professionalizing managerial thinking and activity of inventive Small and Medium-sized Enterprises (SME) as well as that of Public Research Organizations (PRO) in patent-intensive sectors. That course outline is not presented here, but
the most basic concepts of strategic IP management are.
Nokia’s strategic change by means of alliance networks. A case of adopting the open innovation paradigm?
(Koen Dittrich)
In this paper, it is shown in which way Nokia used innovation networks to deal with a changing technological environment, namely the development of mobile telephony. Nokia used mainly international innovation networks in becoming a world leader in the mobile phone industry. This study is mainly theory-oriented in that it seeks to test and where possible refine theories on R&D collaboration strategies of large firms. The theoretical framework builds on the seminal work of March (1991) who distinguished exploration and exploitation for strategic change of large firms. The findings of this study can also help managers of other companies in the ICT industry to refine the collaboration strategies of their companies.
Open Innovation: Researching a New Paradigm
(Henry Chesbrough, Wim Vanhaverbeke & Joel West)
The upcoming sequel to Henry Chesbroughs "Open Innovation" will be released this summer and is called "Open Innovation: Researching a New Paradigm", edited by Henry Chesbrough, Wim Vanhaverbeke & Joel West. The draft chapters can be downloaded here.
The Well-Designed Global R&D Network
(Thomas Goldbrunner, Yves Doz, Keeley Wilson, Steven Veldhoen)
A new study by Booz Allen Hamilton and INSEAD finds that organizations benefit when they configure their innovation networks for cost and manage them for value.
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