Open Innovation Advantages And Disadvantages

822 Words4 Pages

Open innovation is used to fasten internal innovation by using inflows and outflows and spread the markets for external usage. Open innovation is a significant part of innovation due to the outsized ideas and technologies where companies derive their growth and development. Other than this, the majority of companies recognize that open innovation is the only way through which they can explore new growth opportunities and experience fewer risks. It offers them more responsiveness and flexibility minus automatically applying extra and huge costs. All that companies do is augment the speed of their exploitation and also capture the overall economic value through spinning out unexploited concepts or inward licensing. On the same note, they generate a sense of urgency regarding some of the internally available technologies among their internal groups.
The development of open innovation began way back when a small group of practitioners embarked on innovating a group of …show more content…

Especially, it provides the opportunity to minimize research costs, bring more innovations to the market and spread risks. That is; companies, public agencies, and individuals will collaborate in order to generate innovative products and services. Through such processes, it shares both rewards and risks. This idea of sharing numerous researches has yielded significant benefits on a variety of fields such as IT business and healthcare. On the other hand, open innovation also has its own limitations to the companies that use them. It often has a loss of control because it does not have a tight control of the majority of external resources compared to the internal resources. With no doubt, this implies that an organization’s internal resources play a more significant role. In addition, it entails higher complexity of managing information to imply that there will be a need to consider intellectual property and external relationship

More about Open Innovation Advantages And Disadvantages

Open Document