Technology Companies and Open Innovation

The term open innovation is defined by Chesbrough (2003a p.XXIV) as “a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as firms look to advance their technology”.

Open innovation is a recent phenomenon which has become vital to firms in the modern economic climate for numerous reasons. For instance firms can no longer hold all the resources, expertise and technology within one company needed to create radical innovations. A mobile workforce and the ever increasing pace of technological development now means that companies need to act fast to stay ahead of their competition.

Cymtec Limited tends to engage in open innovation with all of our customers and some of our suppliers.  Thus Cymtec is able to expand their resource and knowledge base and so are our customers. Open innovation therefore also requires the development of a large contact base within relevant fields in order to streamline the process.

Open innovation obviously does bring new issues to companies which they previously may not have experienced. However, it seems that open innovation enables R&D companies to reduce their time to market and consistently improve the skill and knowledge base of their human capital base.

Do you have any experience of open innovation in your organisation?