The key to open innovation is collaboration, strategic alliances and experimentation.
Open innovation is an innovation management approach that promotes collaboration and the exchange of ideas between a company and external agents, such as other companies, universities, research and development (R&D) centers, and the general public. Instead of relying solely on internal resources and knowledge, organizations seek to leverage external ideas and technologies to accelerate the development of new products and services, improve processes and reduce costs. This approach encourages cooperation and co-creation, generating value for both the company and its external collaborators.
Examples of open innovation
Procter & Gamble (P&G)
P&G implemented the Connect + Develop program to look outside the company for ideas and technologies. Through collaborations with universities, laboratories and other external partners, they have managed to develop innovative products such as the Oral-B CrossAction toothbrush and Pampers Dry Max diapers.
LEGO
LEGO has used open innovation through the LEGO Ideas platform, where fans can submit their own set designs. The most popular ones are evaluated and, if approved, they become official products and the creators receive a percentage of the sales.
IBM
IBM promotes open innovation through its IBM Developer platform, where it offers access to tools, software and technical support for third-party developers. It also collaborates with open source communities, such as the Apache project and Linux, to jointly develop and improve technologies.
General Electric (GE)
GE uses the GE Open Innovation platform to launch challenges to innovators and entrepreneurs around the world. Through these challenges, it has found innovative solutions to improve the efficiency of wind turbines and other industrial products.
Mozilla
The Mozilla Foundation, creator of the Firefox browser, is based on an open innovation model, collaborating with developers around the world on free and open source software projects. This allows you to continually improve and update your products.
Unilever
Unilever has developed the Unilever Foundry program, a platform that connects the company with startups and entrepreneurs. Through this initiative, it seeks innovative solutions in areas such as sustainability and product development.
Types of open innovation
Open innovation can be classified into several types, depending on the nature of the collaborations and the impact of the resulting innovations. The most important ones are described below, including disruptive and incremental innovation .
Inbound open innovation
An organization seeks and adopts external ideas, technologies and knowledge to incorporate them into its own innovation processes.
Outbound open innovation
An organization licenses or sells its own ideas, technologies and knowledge to other companies or entities.
Collaborative open innovation
A combination of inbound and outbound innovation, where organizations collaborate together to co-create new solutions.
Crowdsourcing and open innovation platforms
Companies use online platforms to launch challenges and gather ideas from the general public, experts or specific communities.
Incremental innovation
Small continuous improvements in existing products, services or processes. In the context of open innovation, this may involve collaborations to refine current technologies, optimize procedures, or improve efficiency.
Disruptive innovation
It involves radical changes that completely transform industries or markets. Through open innovation, companies can access emerging technologies, innovative business models or revolutionary ideas that have the potential to create entirely new markets or displace incumbents.
LEGO ideas is an example of open innovation that leverages social media in a productive way.
Technology
Technology plays a fundamental role in open innovation, facilitating collaboration and knowledge exchange between different entities to drive the development of new solutions. In this context, several concepts are intrinsically linked to the way technology is implemented and managed in open innovation processes.
Transfer of technology
Movement of knowledge, technologies, manufacturing methods, manufacturing samples and skills between governments, universities, private companies and other institutions. It allows technologies developed in one specific context to be applied and adapted in others, reducing time and costs.
Nanotechnology
Manipulation of matter at an atomic and molecular scale, generally less than 100 nanometers. In open innovation, nanotechnology offers vast opportunities for interdisciplinary collaborations that can lead to significant advances in areas such as medicine, electronics and advanced materials.
Biotechnology
Uses living organisms and biological systems to develop products and processes. Collaborations between pharmaceutical companies, academic institutions and biotech startups can accelerate the discovery of new medicines, treatments and agricultural technologies.
Technological surveillance
Process of systematically monitoring and analyzing technological innovations and market trends to identify opportunities and threats. It helps organizations stay abreast of external developments and quickly integrate emerging technologies that could benefit them.
Technological scouting
Active and systematic search for new technologies, ideas and talents outside the organization. It allows companies to identify and evaluate emerging technologies that can be incorporated or licensed to improve their own products and processes.
Technology roadmaps
Strategic tools that outline future technological developments and the paths to achieve them. They help coordinate efforts between multiple partners, aligning their activities with common technological goals. They facilitate long-term planning and interorganizational collaboration.
Technological Foresight
Systematic forecasting of future technological trends and developments to guide innovation strategies. It enables organizations to anticipate change and prepare to take advantage of emerging opportunities through strategic collaborations.
Democratization of technology
Make advanced technologies accessible to a broader public, beyond large corporations or research centers. Open innovation benefits from this process by allowing individuals, small businesses and communities to participate in the development and implementation of new technologies, enriching the innovative ecosystem with a diversity of ideas and approaches .
Incubators and accelerators can reward the entrepreneurship of independent companies.
Incubators and accelerators
Business incubators
Organizations that support entrepreneurs and startups in the early stages of development. They offer resources such as physical space, advice, training, access to collective financing ( crowdfunding ) and networking. Its goal is to help overcome initial challenges and develop a viable business model. In the context of open innovation, incubators facilitate collaboration between startups and established companies, promoting the transfer of knowledge and technologies.
Business accelerators
Intensive, short-term programs that seek to boost the growth of already established startups. They offer mentoring, funding, and access to networks in a limited period (typically 3 to 6 months). Unlike incubators, accelerators focus on startups with a certain degree of traction and prepare companies to scale quickly. In the context of open innovation, accelerators help startups collaborate with large corporations and integrate into broader innovation ecosystems.