Hundreds of companies are pursuing open innovation strategies (OI) to kick start creativity and crack difficult R&D problems. OI is a relatively new approach to fostering innovation. Instead of relying solely on internal R&D, OI programs help firms leverage expertise and resources outside of the company. In many cases, this has proven to be a smart and cost-effective way to become more innovative. However, the reality can be very different. Opening up your innovation strategy to outsiders is not always easy nor does it always pay immediate dividends. Managers seeking to maximize OI’s potential should first look to establishing the right management practices and program tactics.
Conceptually, OI is a more distributed, participatory, and decentralized approach to innovation, based on the fact that knowledge and problem solving today is widely distributed. The premise is that no company, regardless of its size and capability could innovate effectively and efficiently on its own. There are two sides to OI. The first is the “outside in” approach through which ideas and technologies are brought into the firm’s own innovation process. This is the most popular type of OI. The other, less commonly recognized approach is “inside out,” where a firm’s dormant or under-utilized technologies are disseminated externally, to be incorporated into others’ innovation processes.
To read the full, original article click on this link: Spurring innovation by bringing the outside in | Executive | Financial Post
