Introduction of Open Innovation Practice

Running Head: OPEN INNOVATION
OPEN INNOVATION
Name of the Student
Name of the University
Author Note

1OPEN INNOVATION
Table of Contents
Introduction................................................................................................................................2
Literature Review.......................................................................................................................3
Open Innovation Practice.......................................................................................................3
Creativity of Members...........................................................................................................6
Categories of the Open Innovation Orientation.....................................................................7
Measurement of Open Innovation..........................................................................................9
Challenges in Engaging with Open Innovation...................................................................10
Evolving Open Innovation...................................................................................................11
Conclusion................................................................................................................................12
Reference..................................................................................................................................14

2OPEN INNOVATION
Introduction
Open innovation is the latest approach that overwhelmingly challenged the traditional
approach to the management of innovation and afterwards, it has emerged as the hottest
topics in the management science. The open innovation concept was firstly proposed in 2003
by the Chesbrough. This proposal had heavy impact on the academic and practical business.
Chesbrough stated that open innovation is the paradigm, which makes the assumption that the
entities should use internal and the external ideas and external and the internal paths to the
market, as entities looks for advancement of their technology (Chesbrough 2017).
Earlier companies used to rely on their internal resources, while conducting their
R&D activities and characteristically only the company, which had sufficient level of internal
resources, could be able to receive the revenue with the help of their own innovation.
However, currently, there are various leading organizations that are facing intense
competition from the newly emerged organizations that have become successful in the
commercialization of discoveries made by the others (Chesbrough and Brunswicker 2014).
The definition given by Chesbrough on open innovation is broader and quite
ambiguous and he himself not provided specific and clear example of the open innovation
practice. Hence, it is interpreted by the practitioners in different ways. Some of the
researchers believe that the open innovation is not the new approach. Researchers have both
praised as well as severely criticized this approach. Some researchers are in thought that it
will become dominant approach in the management of company, particularly in the industries
of technology. Others believes that interest in the approach of open innovation will die out
soon. Serious concerns have been raised in regard to lack of the empirical set of evidence
regarding open innovation benefits. Hence, this paper aims to discuss “whether open
innovation is a fad or phenomenon”.

3OPEN INNOVATION
Literature Review
Open Innovation Practice
It has been decade since open innovation concept was introduced first in the literature
of management and began practicing in the firms. Although, it has provided the new insights
and the beneficial directions in innovation management beyond the boundaries of entity in
the areas of the latest processes, products and technologies, the practitioners and researchers
both still faces some of the challenges, which requires to be addressed. During past, in the
literature of management, there were various techniques, approaches and trends that have
been put forward, however, today people listens about them anymore (Lopes and de Carvalho
2018). Hence, it can aptly ask that whether open innovation is fact or fad?
The term and concept of open innovation emerged in year 2003 and it has received
significant attention. Open innovation is adopted widely, especially in the high-technology
manufacturing sectors. The original definition of the open innovation by the Chesbrough is
“purposive uses of inflows and outflows of the knowledge for accelerating innovation in
one’s marker and expanding uses of the internal knowledge respectively, in the external
market. It has been said in the previous studies that open innovation depends on the business
model. The model of business is sources of value for the customers and companies focuses on
importance of the needs of customers (West and Bogers 2017). Hence, in order to activate the
model of business, firms try to find out the resources outside. In business model concept,
from customer’s need perspective, it is significant to understand that what kind of the values
companies should provide or for what purposes products should help the customers. The
companies try to identify the needs of customers and make an attempt for taking benefit of
the external technologies. Hence, there can be relationship between needs of customers and
utilization of the resources outside (von Briel and Recker 2017).