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Open Innovation: An Introduction and Overview (Chalmers)

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Presentation on "Open Innovation: An Introduction and Overview"

Part of seminar on “Open innovation - managing innovation across organizational boundaries” at Chalmers University of Technology, organization by the Managing-In-Between (MIB) research group at the Management of Organizational Renewal and Entrepreneurship (MORE) division at the Department of Technology Management and Economics (TME).

What does open innovation really mean? How does it change how we think about innovation processes? What are the managerial and organizational implications? Join us in this seminar to explore these questions with researchers and practitioners active in the field!

​About the seminar:
The Managing-In-Between research group at the Department of Technology Management and Economics invites you to an inspiring seminar around open innovation, a topic that has gained increasing interest among researchers and practitioners. This seminar will highlight how the concept of open innovation has evolved, what it actually means, and outline where the research frontier is.

The seminar will feature presentations from one of the prominent researchers in the field of open innovation, Associate Professor Marcel Bogers, University of Southern Denmark as well as researchers from the Managing-In-Between research group at Chalmers, led by Associate Professor Susanne Ollila.

After the initial presentations, we would like to invite the audience to participate in a discussion around the organizational and managerial implications of open innovation for practice. This could be especially interesting to discuss in the Chalmers context where several efforts have been made to increase collaboration and innovation across organizational boundaries, but we still need to further our knowledge of how to support and manage such initiatives.


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Open Innovation: An Introduction and Overview (Chalmers)

  1. 1. Open Innovation: An Introduction and Overview Marcel Bogers Seminar: “Open innovation - managing innovation across organizational boundaries” Chalmers University of Technology May 19, 2015 @bogers
  2. 2. Why important? • “No matter who you are, most of the smartest people work for someone else.”’s_Law_(management)
  3. 3. Where do we come from? • “Open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology” • “Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively.” Chesbrough (2003, 2006)
  4. 4. Where are we? • Lots of buzz & fuzz – What open innovation is (not) • Important practice – Manager/Director/VP of Open Innovation • Publications – Books, articles and special issues
  5. 5. 0 500 1000 1500 2000 2500 3000 3500 4000 1999-20002000-20012001-20022002-20032003-20042004-20052005-20062006-20072007-20082008-20092009-20102010-2011 Note: search criterion = “open innovation” OR cite Chesbrough (2003) Open innovation in Google Scholar Chesbrough & Bogers (2014)
  6. 6. Keywords in open innovation research Word cloud based on author keywords, top-50 words excluding “open” and “innovation” (generated with Chesbrough & Bogers (2014)
  7. 7. Example of Philips • “We engage in two kinds of Open Innovation. – Through “inside-out” innovation, we make our skills and resources available to the outside world. For example, we regularly undertake contract research for external parties, provide technical facilities and support, and assist with IP licensing. – Through “outside-in” innovation, we draw on the capacities of individuals, organizations, and even small start-ups from around the globe. By providing a broader window on the world of health and well- being, these strategic partners help us gain new insights and access to new technologies.”
  8. 8. Example of LEGO
  9. 9. Crowdsourcing & intermediaries InnoCentive & • 355,000+ Solvers • Nearly 200 countries • 13+ million Solver Reach • External Challenges: 2,000+ • Project Rooms Opened: 500,000+ • Total Solution Submissions: 40,000+ • Awards Given: 1,500+ • Total Award Dollars Posted: $40+ million • Range of awards: $5,000 to $1+ million • Premium Challenge Success Rate: 85%
  10. 10. Open innovation at a higher level
  11. 11. Defining open innovation • “A distributed innovation process based on purposively managed knowledge flows across organizational boundaries, using pecuniary and non-pecuniary mechanisms in line with the organization’s business model.” Chesbrough & Bogers (2014)
  12. 12. External knowledge base Current market New market Other firm’s market Outside-In Inside-OutCoupled Internal knowledge base Firm boundary Chesbrough & Bogers (2014)
  13. 13. Systematic review of open innovation Inbound: 118 Outbound: 50 Coupled: 70 57 14 11 24 26 1 32 West & Bogers (2014)
  14. 14. Process model West & Bogers (2014)
  15. 15. West & Bogers (2014)
  16. 16. 1. Obtaining innovations • Best covered of the phases – Searching, enabling, filtering, acquiring – Sourcing particularly well covered • Most popular area: sources of innovation • Often about external knowledge and not external innovations • Limited focus on limits/costs West & Bogers (2014)
  17. 17. 2. Integrating innovations • Considers organizational capabilities and culture – Absorptive capacity • Over-researched, ill-measured? – NIH is mentioned, not well measured – Implicit assumptions • Integration seems to be a black box – Are new competencies needed? • Limited discussion of open innovation as substitute for R&D West & Bogers (2014)
  18. 18. 3. Commercializing innovations • Lots of value creation – Often measured using NPD metrics – Not as much value capture • Cf. business model • Assumes similar commercialization process for external and internal innovations – How do firms differ in external innovation commercialization capabilities? West & Bogers (2014)
  19. 19. 4. Interaction mechanisms • Beyond the linear model – Reverse paths – Feedback mechanisms • Information flow upstream – Reciprocal processes • Ongoing interactions • Includes co-creation, networks, communities • Research relatively scarce West & Bogers (2014)
  20. 20. Obtaining Integrating Commercializing
  21. 21. Gaps and opportunities (1) • Use of business model – Particularly value capture – Measure strategic objectives/success • Examining the entire process – More on back end of process – Consider process end to end West & Bogers (2014)
  22. 22. Gaps and opportunities (2) • Clarity of innovation construct(s) – Antecedents, processes & outcomes – “Innovation” not same as antecedents • Move beyond linear model – Cf. “outbound” & “coupled” • Limits and moderators – Decreasing returns, costs & risks (failures?) – Interaction effects – Within-firm processes/effects/decisions West & Bogers (2014)
  23. 23. Thank you for your attention! Marcel Bogers @bogers
  24. 24. Reference List • Chesbrough, H. 2003. Open Innovation: The New Imperative for Creating and Profiting from Technology. Boston, MA: Harvard Business School Press. • Chesbrough, H. 2006. Open innovation: A new paradigm for understanding industrial innovation. In H. Chesbrough, W. Vanhaverbeke, & J. West (Eds.), Open Innovation: Researching a New Paradigm: 1-12. Oxford: Oxford University Press. • Chesbrough, H., & Bogers, M. 2014. Explicating open innovation: Clarifying an emerging paradigm for understanding industrial innovation. In H. Chesbrough, W. Vanhaverbeke, & J. West (Eds.), New Frontiers in Open Innovation: 3-28. Oxford: Oxford University Press. • West, J., & Bogers, M. 2014. Leveraging external sources of innovation: A review of research on open innovation. Journal of Product Innovation Management, 37(2): 814-831. • West, J., Salter, A., Vanhaverbeke, W., & Chesbrough, H. 2014. Open innovation: The next decade. Research Policy, 43(5): 805-811.