Home » Open Innovation

Should R&D Units Lead Open Innovation? Lessons from HP, Nokia

February 23, 2010 Open Innovation 5 Comments

I scan all tweets containing the words “open innovation” as this is a great way to stay updated on the open innovation community.

Recently, this one showed up. “@jsorgent: HP Open Innovation Office authenticity fail: http://www.hpl.hp.com/open_innovation/. Terrible site.”

I have a general interest in following the innovation efforts at HP. Unfortunately; I have to say that I am not impressed by their current open innovation approach.

If you google HP and open innovation, you are led to their HP Labs Open Innovation Office which @jsorgent describe as a terrible site.

The first sentences from the website go like this: “HP Labs’ Open Innovation Office pursues and coordinates research collaborations with top researchers and entrepreneurs in academia, government and business around the world. It ensures joint research endeavors result in high-impact research that meets HP and its partners’ scientific and business objectives.”

Please note that HP Labs is an exploratory and advanced research group. As such, it is not a surprise that they are more interested in academia and research institutions than businesses. You also get that feeling in this presentation by Rich Friedrich, Director of HP Labs Open Innovation Office.

By the way, I could just as well write this blog post about Nokia as they have a similar setup. Check this link: Open Innovation at Nokia Research Center and try to google Nokia and open innovation.

I admire HP and Nokia for still having huge corporate R&D labs that drive out innovation that is worthwhile to a greater society. However, it does raise a few questions.

Can you claim to be an open innovation leader if your initiatives have a strong focus on university collaboration and less on corporate partnerships?

Can you extract the true value of open innovation if overall responsibility is placed in units such as HP Labs and Nokia Research Center? Does this hinder a more holistic approach on innovation that goes beyond R&D?

I have not spoken with HP people on this blog post so they might reply and tell me about interesting corporate initiatives that they have beyond the HP Labs Open Innovation Office. Then I stand to be corrected.

However, this would just raise another issue that might even be more serious than the above. Should a company with great initiatives on open innovation not share this with the rest of the world?

I think this is very important especially as it has become widely accepted that one of the key objectives of open innovation is to become the preferred partner of choice. Being the preferred partner of choice is very much about perception.

Of course, you need to have processes in place that qualifies you as a serious open innovation player. However, this is not what makes you the preferred partner of choice. This is merely your ticket to play the game.

What separates you from your competitors having similar setups in place is how well you communicate about your open innovation initiatives and how good you are at building the proper perceptions on this. I think HP has issues that require attention on this.

To build further on this, please remember that open innovation is very much about finding technologies, ideas, solutions and new paths to markets. It is, however, just as important that these things are able to find you. Companies that want to do open innovation with HP most likely find HP Labs Open Innovation Office first.

They might get the impression that HP focus too much on research rather than development and getting innovation to the market fast. This could drive them towards HP’s competitors instead. This is not an attractive position to any company.

Share |

Currently there are "5 comments" on this Article:

  1. createpei says:

    I really have to disagree!

    You speak as though innovation at the HP site should be more akin to being a marketing tactic – communicating the want and will of HP to innovate with other corporate like-minded individuals who together they might come together and make something truly fantastic.

    It would appear as though HP is instead trying to partner with university and other basic research faciltiies.

    QUESTION Can you claim to be an open innovation leader if your initiatives have a strong focus on university collaboration and less on corporate partnerships?

    There are two types of research – basic and applied. The basic research is typically carried out at the university level and does not (at least initially) have an emphasis on commercialism (although this is changing). Many breakthrough technologies come from these sources although they are many times too costly to replicate on commercial basis.

    I would suggest based upon my schooling in innovation that large companies such as HP then, are creating sites such as this to (likely) help to build those relationships with the universities so that they would have first stander access to any such new ideas. Companies with the know-how on how to see important research and the potential for refinement, improvent and commercialization of that knowledge will ultimately be the big winners in the long run.

    QUESTION> Can you extract the true value of open innovation if overall responsibility is placed in units such as HP Labs and Nokia Research Center? Does this hinder a more holistic approach on innovation that goes beyond R&D?

    I can almost guarantee you that HP labs has "other" means for creating what you talking about. R&D are not the be all and end all of invention – many "innovations" involve process changes and can be driven from a multitude of sources including the factory floor, or customer interactions.

    I would suggest that what HP is attempting to do would be to leverage it's R&D dollars so that it can focus on the commercial aspects and leave a lot of the expensive leg work to their basic research partners…

    Perhaps firms will lose their ability to create new some new ideas and instead only become idea enhancers, that could potentialy occur… but I imagine that HP still has internal innovation happening to keep that learned knowledge (on how to innovate) in house.

    Just some thoughts – glad to hear your thoughts in reply!

    Cheers,

    SW

  2. Stefan Lindegaard says:

    Hi SW,

    I appreciate your comments!

    As I wrote, I admire HP Labs and similar corporate initiatives for their ability to turn out innovation that benefits not only the company but also the greater society. I have no idea whether HP Labs is a good investment for HP and this is probably also a quite complex issue that involves other than just financial aspects.

    I agree that HP Labs try to leverage their R&D dollars by opening up to external partners. This makes a lot of sense. I also assume that HP have other "means" i.e. open innovation initiatives that are more focused on businesses. I just wonder why they are not more visible.

    This is where I believe HP and other corporations with extensive R&D labs need to be careful. They need to strike a proper balance of innovation in times like this where we are moving away from just innovating on technologies to getting a more holistic view on innovation.

    There are pros as well as cons in having R&D units being the corporate face of innovation and I simply urge companies to consider this carefully. I know several HP people and I am sure they are considering this. Unfortunately, it just does not show that clearly yet…

    Stefan

  3. Rein Vosari says:

    Let's re-examine this (6 months down the line)…While Mess rs Hewlett and Packard are doing pirouettes in their graves…Mr. Hurd has left with the goody sack and is being protected by genius "Larry"…HP is so history!

    Bring back Senator Fioranna (:>)

    ReV

    PS. Let us not confuse US biz with Innovation

  4. Hi Stefan – there’s absolutely nothing wrong with R&D units leading Open Innovation, in fact it’s the best part of large companies to lead OI. Next, there’s nothing wrong with the basic “R” part of R&D interacting strongly with universities and research institutes to strengthen their understanding of the science. Where HP’s efforts APPEAR to be wrong is that (so far) you haven’t found evidence of OI in the rest of R&D, such as interactions with other external organisations to strengthen product development, e.g. with suppliers, or with technology partners who can help in bridging the gap between science, product concept and product development.

    However, put HP and Strategic Alliance into Google, it’s a different story – here’s one example http://h10134.www1.hp.com/insights/alliances/agility/. The Agility Alliance mission actually “Encourages collaboration for new technologies and innovative solutions”.

    OI and Strategic Alliances are strongly interlinked, and as long as the alliance governance follows the correct structure there are bound to be many touch points, including the influence on innovation.

    So to be fair to HP, there seems to be a lot more to this.

    Kevin

  5. Stefan Lindegaard says:

    Hi Kevin,

    Thanks for bringing the Agility Alliance program to my attention. It does, indeed, look quite interesting and relevant for open innovation-like efforts.

    However, it does seem to focus only on a few, selected partners and all of those are big corporations. I hope HP have similar programs that are open beyond selected partners and for companies of different sizes.

    Stefan

My Books

Site Sponsor

LinkedIn Community

Join the Leadership+Innovation group on LinkedIn. Click this link: Leadership+Innovation

Other Events

Are you looking for good innovation reads?

Sign up for the 15inno newsletter!

Archives

Follow Me @ Twitter

Error: Twitter did not respond. Please wait a few minutes and refresh this page.