W4: Chesbrough (2003): The Era of Open Innovation Flashcards
Internal R&D
Used to be a valuable strategic assets, and even a barrier to entry in many markets. However, there has been a fundamental shift in how companies generate new ideas and bring them to market
Closed innovation model
A company generates, develops, and commercialises its own ideas. This philosophy of self-reliance dominated R&D operations of many leading firms. The philosophy was ‘Successful innovation requires control.’ By investing more heavily in internal R&D and hiring the smartest people, companies reaped most of the profits. Then, the cycle was repeated again
Open innovation
A company commercialises both its own ideas as well as innovations from other firms and seeks ways to bring its in-house ideas to market by deploying pathways outside its current business. The boundary between the company and environment is porous, enabling innovations to move more easily between the two. Companies can commercialise internal ideas through channels outside of their current businesses to generate value for the organisation
Innovation investor
Used to be the R&D budget, but now ranges from venture capital, angel investors, private equity investors, and corporate VS entities. In addition to financing, they also supply valuable advice to startups and new business ideas
Innovation benefactors
Provide new sources of research funding. Unlike innovation investors, they focus on the early stages of research discovery. Some companies devote a portion of their resources to playing the role of benefactor. By funding promising early-stage research, they get a first look at ideas and can selectively fund those that seem favourable for their industry
Innovation explorers
Specialise in performing the discovery research function that previously took place primarily within corporate R&D labs. Challenge: dependent on external sources of funding
Innovation merchants
Also explore, but theyr activities are focused on a narrow set of technologies that are then codified into intellectual property and aggressively sold to others. They will innovate, but only with specific commercial goals in mind, whereas explorers tend to innovate for innovation’s sake. Challenge: supplying those innovations to the market
Innovation architects
Provide a valuable service in complicated technology worlds. In order to create value for their customers, they develop architectures that partition this complexity, enabling other companies to provide pieces of the system. To be successful, they must establish their system’s solution, communicate it, persuade others to support it, and develop it in the future. Challenge: problem of having an abundance of ideas, which makes it difficult to create useful systems
Innovation missionaries
Consist of people and organisations that create and advance technologies to serve a cause. They do not seek financial profits from their work, it is the mission that motivates them
Innovation marketers
Defining attribute is their keen ability to profitably market ideas. They focus on developing an understanding of the current and potential needs in the market
Innovation one-stop centres
Provide comprehensive products and services. They take the best ideas and deliver those offers to their customers at competitive prices
