Open innovation means that companies combine both internal and external sources to develop and market new products or services. Companies dare to use knowledge from outside the walls of their own organization.
Open innovation is a dynamic process, in which the organization can acquire internal and external new knowledge/technology. By investing in other (start-up) companies and participating in knowledge networks, the organization can absorb new knowledge. By launching new companies (spin-offs) and/or selling knowledge and technology in the form of licenses, the organization can bring these broad sources of knowledge to new markets.
outside-in and inside-out movement
Specifically, two streams must be distinguished in open innovation: bringing innovation from the outside in (the so-called outside-in movement) and bringing innovation from the inside out (the so-called inside-out movement).
To access external sources of ideas and technologies, a company has several options. First, there are the strategic alliances that companies form with their suppliers, customers or competitors in order to develop a new product. A well-known example is the collaboration between Philips and Douwe Egberts, which led to the development of the Philips Senseo.
OSSLA cooperation
In OSSLA, Open Source vendors work together in a similar way. Strategic partnerships are being established with industry-specific companies. This industry-specific knowledge in conjunction with the technical know-how and innovation power of the Open Source companies should lead to new products and services.
Innovation starts with knowledge
Entrepreneurs who know that a product or business process can be improved and who know how to realize this, are able to innovate. For innovation in SMEs, knowledge is often a greater lack than money. Stimulating innovation means promoting the exchange of knowledge and facilitating the actual implementation where possible.
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