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Writer's pictureVinícius David

Open Innovation: Benefits & Challenges

According to the Oxford University's definition, open innovation is when "an organization not only relies on its own internal knowledge, sources and resources for innovation, but also uses multiple external sources to drive it." The concept was created in 2003 by Henry Chesbrough, a professor and researcher at UC Berkeley. According to the author, this business management model promotes a DECENTRALIZATION within companies. It drives an innovative mindset through the acceptance that the company can count on different partners to create new solutions, follow trends or reinvent itself. The application of open innovation within the organization can involve anything from simply hiring a startup to develop the desired solution to corporate venture initiatives, innovation challenges, research funding, and co-innovation work. Advantages: - Development of the desired solution - Access to the most talented professionals in each sector - The company can create products and services faster - Develop more innovation projects Challenges: -Intellectual property - If the business is very strategic for the company, it is not always easy to make the transition to an opening of information - Open innovation processes do not fail to face difficulties, delays and even changes along the journey. Source: Época Negócios


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