Why open Innovation is an essential mean of growth?

It is evident that the advancement in technology is dictating new "rules of engagement", new business models and innovation also in terms of business development. Change in the way of thinking and doing business is no longer a matter of choice but an essential mean of growth.

For many years the intellectual property (IP) has been considered as closed innovation. It means that IP has been controlled internally and served only the company itself. Open innovation, from the other hand, means that the company can also profit (for example) from licensing its IP to others, thus enabling new business models.

Research and development departments (R&D) served as an engine for new inventions, which has been developed and distributed by the company itself. The open innovation concept would suggest joined R&D efforts, which means that the company could benefit from other R&D source (a startup company, for example) realizing that there are other bright minds, in the same functional area, out there. The advantage is not only about increasing innovation but also about accelerating time to market. The company can integrate relevant technology from the outside, and use its already existed business infrastructure.

This could be a great business collaboration for the company and the startup as each business entity can benefit from the other's relevant strength. It is a winning combination of technological agility and business know how.

I am speaking from my own experience - during the past two decades, I have been intensively involved with several global corporations in business leadership positions (3M, Unilever & AMEX GBT). I have also worked for innovative startups, including one of my own.

It is essential to look beyond the existing business boundaries and gain access to new ideas, technologies and business models. Using open innovation methodology can accelerate business growth by providing critical competitive advantage.

Need a practical idea about open innovation?

amarin.meir@gmail.com

GlobalStart Business Innovation.