Does open innovation really work? Do companies get the expected outcomes? Are they satisfied with their open innovation investments?
I often get these questions when I do talks and sessions and sofar I have replied that I see many positive things, but that we have lack the conclusive reports (by academic researchers). This has changed.
Henry Chesbrough and Sabine Brunswicker have released a great report on “Managing Open Innovation in Large Firms” in which they give us the answers to the above questions. And yes, the conclusion is that open innovation works and that there is a growing level of interest and investment in this new paradigm of innovation.
The report is freely available. It is definitely worth a read as suggested by these overall conclusions:
• 78% of firms in our sample report practicing open innovation
• No firms in our sample report abandoning their practice of open innovation
• 71% report that top management support for open innovation is increasing in their firm
• 82% report that, compared to three years ago, open innovation is practiced more intensively
• Customer co-creation, informal networking, and university grants are the three leading inbound practices in 2011. Crowdsourcing and open innovation intermediary services are rated lowest in importance
• Establishing new partnerships, exploring new technological trends and identifying new business opportunities are the leading strategic reasons to engage in open innovation
• Corporate R&D and product & process development units report more autonomy in budgeting for innovation activities
• The typical large firm in our sample spends US$ 2 million annually on open innovation, and employees 20 full time equivalent people to do the work
• Open innovation is not much formalized yet, and cultural norms are as important for open innovation as formal practices
• The biggest challenges in managing open innovation are within the firm. The change process from closed to open innovation is rated as the most difficult task
• Firms are not satisfied with their current open innovation metrics, though they are more satisfied with their overall open innovation performance to date
The report is full of great insights! Enjoy!