7 Innovation

Session Synopsis

This session focuses on the growth of “open innovation”. The orthodox “closed” model of innovation sees innovation as taking place within organisation who develop their original ideas and market them. Open innovation is a more flexible model where organisations may use ideas originating elsewhere or allow their own innovations to be developed by firms in a better position to market them.

Session Objectives

Be able to:

• describe “open innovation” and contrast with “closed innovation”;
• suggest mechanisms of innovation that fit with the open model;
• explain the rise of “open innovation”.

Key Terms

• Open Innovation
• Crowdsourcing

Papers

Chesbrough, HW 2003, ‘The Era of Open Innovation’, MIT Sloan Management Review, 44, 3, pp. 35-41.

On line text of Democratizing Innovation, Eric Von Hippel, 2005.

Online Resources

Chesbrough on Open Innovation

Howe on Crowdsourcing

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