Literature Review on Open Innovation in SMEs

This assignment requires a literature review on the topic of open innovation in small and medium-sized enterprises (SMEs). The student is expected to critically analyze existing research papers and articles related to open innovation in SMEs, identifying key concepts, theories, and methodologies. The review should cover a range of topics, including the benefits and challenges of open innovation in SMEs, case studies of successful open innovation initiatives, and the role of universities and research institutions in facilitating open innovation. The student is also expected to critically evaluate the existing literature and identify gaps or areas for future research.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Innovation and its importance for organisation in comparison with invention.....................1
P2 Shaping of innovation and commercialisation by the vision, leadership, culture and
teamwork of firm. .......................................................................................................................3
P3 4P's of innovation and use of innovation funnel....................................................................4
P4 Development in frugal innovation.........................................................................................6
P5 Application of new development process and importance of commercial funnel.................7
P6 innovation case for enterprise................................................................................................8
P7 Tools used by enterprise for protect intellectual property.....................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation is a term which is mainly used to introduce or to launch something creative
and fresh in market place, so that different customers minds can be attracted. This mainly focus
on introducing and creating a new and unique ideas in market. As mention above innovation
supports employees in developing there skills and abilities with increase in capabilities to
perform. This factors emerged due to innovation directly helps individuals of cited organisation
in increasing productivity. In basic terms its can be said that advancement is and new thought,
technique or gadget. It is critical piece of an association where they tries to apply new better
arrangements according to the necessities and requirements of existing business sector (Aryal,
and et. al., 2016). This is finished by ventures to complete better handling of item and
administrations by compelling utilization of new innovations accessible in showcase for
associations. Developments inside business is most imperative factor to catch advertise for there
administrations and merchandise with increment in mark esteem. Advancement is connected
with creation yet it varies. It is recently following stage after creation. Numerous enormous
associations, for example, Apple Inc. what's more, Virgin Group do advancement to expand
estimation of there merchandise for clients and for upgrading brand picture. Following task is
based of Quad which gives advertising administrations in economy of United Kingdom. This
task will contemplate development and its significance of referred to association. Distinction
amongst advancement and creation is depicted quickly in a report.
P1 Innovation and its importance for organisation in comparison with invention.
It is a process of transferring of the ideas in to actuality is mainly known as innovation. It
can be a change which is maid in the existing products and services so that they can add value to
it and that would help in carry out the requirements of all he customers by providing them good
products and services and so that they can be able to achieve satisfaction level. This is a
impressive process which is mainly adopted by the fir so that they can be able to maintain the
competitive level in market place and this will also help them in increasing of there brand image
and to gain profit (Breznitz and Etzkowitz, 2016). It is the modification of existing products so
that it can cope up with market demands so that it can fulfil needs of customers. This process
would aid in creating of new ideas and it can transform into practical so that it can develop a
product.
1

For example- In apple company they always try to innovate Iphones with new technologies in it,
they add different features to make it unique. They do this so that they can be able to capture
high share in market area.
Invention is in which something new is creates which will be new to the market, the thing which
is introduced newly and first time. This provides strength to the firm and can increase the
standard level of the operations.
Importance of innovation for employees of the organisation:
Innovation which is created by the firm have various importance for both firm and
employees. There are many techniques which Quad can innovate many different techniques so
that they can be more effective in the present time. Importance of innovation for the employees
of Quad is explained under:
 Increase in capabilities:- New development inside referred to association have
extraordinary significance for its representatives. The a greater amount of advancement
upgrades capacities of workforce which straightforwardly bolsters in their execution.
 Develops skills:- Huge advancement inside business underpins in creating
representatives aptitudes. This help workers in performing exercises viably and
proficiently which additionally benefits venture specifically (Chun and et. al., 2015).
 Increases knowledge:- Workers of association are straightforwardly profited by
advancements which happens. New development inside big business at certain time
interims bolsters workforce in expanding there learning to perform allocated exercises.
 Increases productivity:- As specify above advancement underpins representatives in
creating there aptitudes and capacities with increment in abilities to perform. This
elements rose because of development specifically helps people of refereed to association
in expanding profitability
Advancement is a term which portrays making something new from the things which are
as of now made. In short word it is known as to alter something is otherwise called advancement.
In this, one can get achievement in the event that they have imagination in them. It is vital to
have creativities with the goal that firm can have the capacity to pull in more individuals towards
them as now a days, individuals need more imaginative items. Blast here and there utilize
creativities in items with the goal that they can make something new for their clients. Individuals
2

get a kick out of the chance to buy and utilize new items dependably. Along these lines, as
indicated by them, organization ought to do developments.
Illustration Apple is an organization which is loved by parts and loads of individuals as they use
to do advancement in their items, they use to actualize the extra elements and new advances in
their items which individuals use to like as in light of the fact that it use to be redesigned things.
Development is known to make anything new which is new in the market and for
individuals which is not made by anybody some time recently. In this adjustment is not being
done, new things are being made. This can be a quality for a firm and this may expand their level
of norms. Indeed, even it can give association upper hand. Thus, it will be better for organization
to concoct something new with the goal that they can have the capacity to accomplish more
significance in the commercial centre and among gathering of individuals. There are just least
organizations which just use to do innovation. Firm should plan to do creation and for that, a
great deal of learning and abilities are required as though they don't have any legitimate
information about fundamental things then it will be hard for them to get achievement in which
they had concocted. It is difficult to do creation.
Innovation
This is a term which is utilized when any of the items or administrations are changed and give it
another look or included some new elements in it is known as advancement.
In innovation, one needs to make something new which is not made or made some time recently.
It is made surprisingly and presented in the commercial centre.
This identifies with the items which are existing.
This is a making of new items.
In this, a few abilities are required which are specialized, promoting and vital expertise.
In this procedure for the most part logical expertise is required.
Comparison between Innovation and invention
Basis INNOVATION INVENTION
Meaning It is an procedure of utilizing
of new idea for goods and
services at first time.
In this new ideas are being
generated and that idea use to
be new which is not made by
any one before.
3

What is it? It plus more value to the
products of company
It is related to the making of
new products.
Concept It is an functional practical
execution of fresh ideas.
It is a fresh idea which works
in a concept.
Required skills It need to have strategic,
technical and marketing skills.
It need scientific skills
Occurrence It is done when there is a
requirement of fresh goods and
it requires to have some
improvement in existing
products of firm (Datta,
Mukherjee and Jessup, 2015).
When new idea appear.
Concerned with It is It is directly taken up with
a mixer of different products.
It is taken up with the idea is
created.
Activities Innovation activities are done
within entire structure
This is mainly focused by
research and development
department of organisation.
P2 Shaping of innovation and commercialisation by the vision, leadership, culture and teamwork
of firm.
Commercialization:
A procedure new goods or administration is launched by a current association in an target
market is known as commercialisation. This procedure of presenting new merchandise or
administrations is separated into stages which begins from introductory stage i.e. presentation of
new item. For commercialisation it is essential for association to build up specific procedures in
connection to promoting and circulation of presented item and administration. This procedure
underpins in achieving enthusiasm of clients toward new item (Dutta and Folta, 2016).
Commercialization is essential for association to achieve the advantages of cost done in
4

development for dispatch of new item. This aides in acknowledging advantages of advancement
and backings in expanding aggressiveness of in business world.
There are a few components which contributes in commercialisation and development.
These elements are portrayed as takes after:-
 Vision:- The vision statement of association describe fate of it. These announcement of
an association must be dependable, sensible and feasible. They should create testing and
attractive vision to accomplish it as a general rule. This vision proclamation is a help for
association for moulding development. The advancement must be done according to
vision of undertakings it must be marketed to accomplish its vision. If that development
is not popularized costs done on it is of no utilization.
 Leadership:- It is a factor which assumes critical part advancement and its
commercialisation. A decent leadership influence in surrounding development in
powerful conduct with an assistance of other part. A leader must work on development
according to objectives and targets of association which will assistance in achieving
advantages of commercializing advancement.
 Culture:- The development inside association must be according to culture of referred to
association. Culture specifically influence development negative in the event that it is not
considered in process (Ge and et. al., 2016). To lead advancement and its
commercialisation successfully its important to take a shot at according to social
capabilities.
 Teamwork:- This factor assumes a critical part in moulding development for a business
association. A group of big business is a gathering of at least two individuals who works
with a normal goal toward advancement and its commercialisation to achieve benefits.
This group takes a shot at development according to vision of big business and makes
fundamental move in commercializing it viably with help of strategics. Collaboration is
important as a solitary people can't help in achieving these.
Above specify are factors which are to be considered by Quad association to direct
development and its commercialisation powerful for its prosperity. On the off chance that above
focuses are not thought of it as may prompt shutdown of business or misfortunes.
5

Best case of Apple Inc. also, Virgin Group can be considered where they have considered
these focuses in development and commercialisation which upheld them in expanding there mark
picture and upgrades gainfulness.
P3 4P's of innovation and use of innovation funnel
There are 4P's of advancement which are Product, Process, Position and Paradigm. These
are portrayed quickly as takes after:-
 Product innovation:- It is totally identified with products and administrations offered by
association. The presentation of new item or administration which is altogether enhanced
by business is known as item development. Under this, qualities and different changes are
done in existing products and administration to includes an incentive in it. It helps
business in expanding new clients for develop product (Hossain, 2015).
 Process innovation:- It is said to be a critical change made in a procedure of creation or
change in conveyance strategy for products and administrations. This is imperative for
business which underpins in choosing new procedure of conveying merchandise
adequately. It assumes critical part, which changes technique for generation and upgrades
efficiency.
6

 Position innovation:- It is a third factor of development which bargains in re-situating
the recognitions towards existing products and administrations offered by business. It
incorporates changes in the courses in which products and administrations are introduced.
 Paradigm innovation:- It is identified with change fit as a fiddle and structure of
business. It states new route for business to reach among its clients and an approach to
profit out of its products and administrations.
Innovation Funnel: Innovation Funnel is generally utilized by a business for overseeing process
new item improvement (NPD). Under this, R&D division of big business deals with numerous
thoughts which must be assessed, and shape ideas with testing until the point when the item is
propelled in advertise.
Primary parts of development funnels are depicted as takes after:-
 Opportunities assessment:- In this procedure business investigation open doors for new
product offering or line of expansion (Ke and et. al., 2015). This assessment is finished
by business by accumulation of data from advertise, clients learning and frame different
wellsprings of data.
 In-sight based ideation:- After dissecting openings accessible for new product offering
which fits business system, following stage is to envision different sorts of products and
administration which could accomplish advantages of accessible open door. This spreads
knowledge of market and clients by leading statistical surveying, for example, overviews,
online groups and centre gatherings.
 Conceptualisation:- At the accompanying stage, group of association outlines
reasonable ideas which rose in a phase of ideation. This may incorporate bundling,
duplicate of promoting and different design of item and administration highlights.
 Evaluation and benchmarking:- It is a next procedure after conceptualisation, in which
diverse ideas created by association is tried among target market and clients. This
procedure can incorporate genuine client testing or decision displaying. In light of
criticisms idea can be modified and tried again(Khan and et. al., 2015).
 Go/No go:- After accumulation of input in regards to adjustment of idea with the
assistance of assessment it gives data about odds of progress (Khan and et. al., 2015).
Administrators must take choice whether the new item is to be propelled or not by
7

considering assessment results and factors, for example, producing, cost, edges and
clients inclinations ought to likewise be considered.
 Launch:- At last considering noteworthy idea from choices in this progression it is to be
propelled in target advertise.
P4 Development in frugal innovation
Main reason behind the frugal innovation is to brings innovative and unique products in
reach of all people around the world. Under this, aim is to cutting down the cost of making
products and at the same time maintain the value and quality of the product. This innovation
provide business opportunities to large number of people. By using this Quad can make
manufacture products at low cost and than deliver it to middle and poor class people. This
concept not only decrease the cost of overall production process but also helps in containing the
quality of business products.
Main aim behind executing the process of innovation is different. Some do this in order
to enhance the features or quality of products while other done this in order to decease the cost of
production. Main reason behind adopting this concept can be understood by the following points: Expansion: One of the main reason of this is to expand the current product line of
business and to generate large number of profits. It includes producing new products and
services for satisfying the needs and wants of the customers. Decrease the cost of production process: innovation include the use of updated or
modern technology which decrease the overall cost of manufacturing process and at the
same time provide opportunity to enterprise to achieve a competitive place in market.
 For adding new featured in the product: Modification is one the main reason of
implementing the concept of innovation (Koirala and et. al., 2016). It is done by
enterprises for satisfying the needs and wants of customers by influencing them to buy
the firm's offering.
Whatever be the main reason behind executing the innovation process but frugal
innovation help enterprises in achieving efficiency in this process. Decreasing cost of
manufacturing process decrease the final cost of the product and this help enterprise in producing
low cost and featured products to its customers. This provide an opportunity to poor and middle
class people to buy the featured products. Frugal innovation helps enterprises in capturing a
greater market share.
8

P5 Application of new development process and importance of commercial funnel
Commercial funnel is a concept used by enterprises to selling its products to large
number of customers. Same concept can be used by the Quad to sell its technological products to
large number of customers. Marketing of products is also come under this. It helps in identifying
or evaluating the tastes and preferences of customers and than make featured or specific products
to satisfy the same. Following steps are included under the process of commercial funnel: Sales lead: Under this process firm first identify the main leads and then try to attracting
them to buy the product of the firm (Kolychev and Prokhorov, 2015). Under this
company make a sale contract with customers. Features of the product are the main
reason behind influencing customers to enter into the contract. Qualified prospect: In this, firm studies about the tastes and preference of the customers.
Decision of purchaser evaluated under this. Identification of needs: In that after knowing about the specific needs of the customers,
firm tries to evaluate the specific wants of the consumers. Proposal: After identification of all basic and special needs of the customers, company
add those features form influencing large number of people to buy the same. In this
customers make a decision about buying or not buying the product. Closing: Under this issues of firms are addressed for eliminating the confusion from
mind of the customers.
 Transaction: Under this if customer decided to buy the product than that product is
delivered to the consumer.
Sale funnel can be used by the firm for increasing the overall sale of its product.
In given case study, Apple is holding a competitive position by making or delivering
quality or innovative products to its customers. I-pod is one of the updated product launched by
the firm for its music lovers customers. In this competitive business environment where needs
and wants of customers are changing at a fast speed so it become necessary for survival of firms
to execute the concept of innovation (Mowery and et. al., 2015). Basic products and features of
company can not meet up with the changing wants of the customers and innovation concept help
them in offering something new to their customers.
For survival and for increasing number of profits innovation is the last option available
to the firms. Quad can use this concept for making or delivering new technical products to its
9

customers. This will not only increase the profits of firm but also create a strong and positive
image in mind of its customers and public at large.
P6 Innovation case for enterprise
Any firm can implement the concept of innovation for adding new features in its
products. Like the same Quad can also do this by using latest tools and technology for decreasing
the cost of production process and at the same time for maintaining the quality of its products.
Before adding new features in the existing product firm should have relevant information about
what features organisation wants to add in its products. Following steps can be followed by the
for making new and updated products. Idea generation: This is the first step involve in the process of innovation. Evaluation of
strategies, process and technology used by the competitors is done in this. All this help
enterprise in getting a new idea about what should be done by the firm to capture a
greater market share than its rivals (Novikova, 2015). Other this this idea can be get from
various source inducing newspapers and other sources. Screening of idea: Idea which was generated in the first stage is developed under this
step. In this firm take advice firm number of authorities and test the reliability of the idea. Development of concept: Under this written idea transform into the real actions. Strategy development: Under this firm decide the sequence of steps to be followed
during the process of innovation. Needed resources or required funds are also decided
under this. Evaluation of factors affecting business activities: Under this situation of the firm is
analysed in order to know that whether it is right time to implement the concept of
innovation or not. If firm implemented in wrong timing than this will not give effective
result to the enterprise. Development of product: In this stage company develop the basic product and add
features in it in order to satisfy the needs and wants of the customers (Sharifian, 2015). Test marketing: Before launching the final product before the large public firm launch
the goods in a small areas just to test its acceptability.
 Commercialisation: If the launched product get successions and acceptability than it is
the time to introduce the firm's product to large number of customers. Under this firm
starts selling its product by advertising it.
10

All these steps can be followed by the Quad for effectively executing the concept of
innovation and to capture a large market share. Proper attention should be given by the firm
during the execution of these steps for achieving effective results. As from the study one can
understood that innovation ids very important for succession of firm and same can be done by
the Quad.
P7 Tools used by enterprise for protect intellectual property
Intellectual property are the result of someone's creativity or innovate idea. This can be in
the form of trademarks, copyrights, patent etc. Protection of intellectual property is very essential
for the creator so that misuse can not be done by anyone. This can be in the form of words, signs,
logo design and many more (Song and et. al., 2016). Following are the ways which can be used
by the protecting or safeguarding the intellectual property from any misuse. Helps of professionals: One of the effective and most popular way of saving intellectual
property. Under this professional bodies provide password security to the creator so than
only he or she can access that method or information for doing the work. Rights about intellectual property: Creator or developer of the information should have
information about his basic rights and duties so that he can use all his rights for protecting
his intellectual property. One of the main duty of creator is to get protection for his
innovative idea or process. Keep the data secret before it get protection: It is the responsibility of creator to keep all
the information secret before it get protection. Once the idea will be published it will lose
its ability to get protection.
 Be realistic: Creator or developer of the idea should have knowledge that all
informations can not be protected (Sotarauta and Mustikkamäki, 2015).
Following are the main tools which can be used by the creator to get protection for his
innovative idea or method.
Implementing the concept of innovation is not necessary but collect all data related with
the idea is also must to enhance the outputs of the innovation process. Following are the main
resources through which a firm can collect information: Research and development department of enterprise: Research and development is one
of the main department of every enterprise (Vishnevskiy, Karasev and Meissner, 2015).
Various type of research activities are done by this relating with the current tends going
11

in the market, about needs and wants of the customers and many more. Relevant and
specific data can be collected by the firm through this. Detail about internal department of enterprise: It includes knowledge about process and
method used by the firm completing the task. Other than this current skills and
capabilities of workers and all. Sometimes all these data help enterprise in implementing
the concept of innovation. Third party data: Sometimes firm hire a third party agency for collecting the relevant
data about the firm. This is one of the most popular method used by enterprises to gain a
knowledge about activities of its competitors. Information about customers: Customers are the end users of firm's product. Having
knowledge about needs, wants and changing demands of its customers help enterprise in
planning its future activities. Sometimes this information also give a idea of innovation.
 Knowledge of professional associations: Under this firm collect relevant information
through popular books and journals.
All these methods can be used by Quad for getting the innovative idea for innovation. Collection
of this information helps organisation in making quality products and deliver it to large number
of customers (Xiao and et. al., 2016). Offering new or innovative products is one of the main
element help survival of business and its activities.
CONCLUSION
From the above report it is being analysed that innovation is very essential for the
company as that provides aid in creating new products and services which will help in making
brand image of products and to take market position. Invention is also important for the firm as
that will help in generating new ideas for the firm which is not created by any other, this may
help in staying in market for a long time and to achieve success.
12

REFERENCES
Books and Journals
Aryal, P. and et. al., 2016. Parameterized complex dielectric functions of CuIn1− xGaxSe2:
applications in optical characterization of compositional non‐uniformities and depth
profiles in materials and solar cells. Progress in Photovoltaics: Research and
Applications. 24(9). pp.1200-1213.
Breznitz, S. M and Etzkowitz, H., 2016. University technology transfer: the globalization of
academic innovation. Routledge.
Chun, D. and et. al., 2015. Labor union effects on innovation and commercialization
productivity: An integrated propensity score matching and two-stage data envelopment
analysis. Sustainability. 7(5). pp.5120-5138.
Datta, A., Mukherjee, D. and Jessup, L., 2015. Understanding commercialization of
technological innovation: taking stock and moving forward. R&D Management. 45(3).
pp.215-249.
Dutta, S. and Folta, T.B., 2016. A comparison of the effect of angels and venture capitalists on
innovation and value creation. Journal of business venturing. 31(1). pp.39-54.
Ge, J. and et. al., 2016. Improved Performance of Electroplated CZTS Thin‐Film Solar Cells
with Bifacial Configuration. ChemSusChem. 9(16). pp.2149-2158.
Hossain, M., 2015. A review of literature on open innovation in small and medium-sized
enterprises. Journal of Global Entrepreneurship Research. 5(1). pp.1-12.
Ke, W. and et. al., 2015. Low-temperature solution-processed tin oxide as an alternative electron
transporting layer for efficient perovskite solar cells. Journal of the American Chemical
Society. 137(21). pp.6730-6733.
Khan, I. and et. al., 2015. Synthetic approaches, functionalization and therapeutic potential of
quinazoline and quinazolinone skeletons: The advances continue. European journal of
medicinal chemistry. 90. pp.124-169.
Koirala, P. and et. al., 2016. Through‐the‐glass spectroscopic ellipsometry for analysis of CdTe
thin‐film solar cells in the superstrate configuration. Progress in Photovoltaics:
Research and Applications.
Kolychev, V.D and Prokhorov, I.V., 2015. Conception, technology and methods of development
of university system of innovation projects commercialization based on effectuation.
Asian Social Science. 11(8). p.44.
Mowery, D. and et. al., 2015. Ivory tower and industrial innovation: University-industry
technology transfer before and after the Bayh-Dole Act. Stanford University Press.
Novikova, N. N., 2015. The Russian practice of commercialization of innovation. The economy
in the industry. 3. pp.66-69.
Sharifian, M., 2015. The Paths of Clean Technology: From Innovation to Commercialization
(Doctoral dissertation, University of Alberta).
Song, Z. and et. al., 2016. Perovskite Solar Cell Stability in Humid Air: Partially Reversible
Phase Transitions in the PbI2‐CH3NH3I‐H2O System. Advanced Energy Materials.
6(19).
Sotarauta, M. and Mustikkamäki, N., 2015. Institutional entrepreneurship, power, and knowledge
in innovation systems: institutionalization of regenerative medicine in Tampere,
Finland. Environment and Planning C: Government and Policy. 33(2). pp.342-357.
13

Vishnevskiy, K., Karasev, O. and Meissner, D., 2015. Integrated roadmaps and corporate
foresight as tools of innovation management: the case of Russian companies.
Technological Forecasting and Social Change. 90. pp.433-443.
Xiao, Z. and et. al., 2016. Thermodynamic Stability and Defect Chemistry of Bismuth‐Based
Lead‐Free Double Perovskites. ChemSusChem. 9(18). pp.2628-2633.
Online
The innovation funnel: Bringing Idea To Life. 2017. [Online]. Available through:
<http://www.greenbookblog.org/2011/06/04/the-innovation-funnel-bringing-ideas-to-
life/>. [Accessed on 22nd July 2017].
Innovation funnel. 2017. [Online]. Available through:
<http://innovateonpurpose.blogspot.in/2011/03/evolution-of-innovation-funnel.html>.
[Accessed on 22nd July 2017].
14