Open Innovation
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IT Glossary (O)
How to read the term
Open Innovation
Which field does it belong to?
IT Passport Exam
Field: Strategy
Sub-classification: Technology Strategy Management
Summary
A management strategy that promotes innovation by utilizing knowledge and technology from outside the company.
Details of the term
Open innovation refers to a strategy where a company seeks to innovate by utilizing not only internal but also external knowledge, technology, and ideas. The goal is to move away from traditional closed R&D (Research & Development) and create new products or services by collaborating with startups, universities, and other external partners.
Specific examples of the term
For example, cases where an automobile manufacturer collaborates with a university research institution to develop new fuel technology, or where a large corporation incorporates a startup's technology to develop a new product line, are specific examples of open innovation. It is also common for IT companies to host hackathons or idea contests to incorporate external inventions.
Principles of the term
The principle of open innovation is to improve the speed and quality of innovation by actively utilizing resources outside the company. By incorporating external knowledge and technology, the scope of a company's new ideas and solutions expands.
Background of the term
The concept of open innovation was proposed in the early 2000s by American management scholar Henry Chesbrough. He pointed out that the globalization of markets and the rapid advancement of technology were pushing traditional closed innovation processes to their limits. Behind this is the recognition that diverse partnerships and collaborations are the key to creating new value.
Scope of application of the term
Open innovation is applied in various fields, including manufacturing, the IT industry, the medical industry, and even the entertainment industry. It is widely used, especially in industries where technological innovation is a key factor, to quickly incorporate new trends and technologies.
Pros and cons of the term
Pros
Speeding up innovation
Creating new market opportunities
Leveraging external expertise and technology
Disadvantages
Complexity of intellectual property management
Risk of dependence on external partners
Potential loss of competitive advantage
Perspectives for word examination
In the IT Passport Examination, the following perspectives regarding open innovation are frequently asked:
Differences between internal and external resources
Types of partnerships to promote innovation
Risks and countermeasures regarding intellectual property management
Related terms
Closed innovation: A method of pursuing innovation using only in-house resources.
Joint development: Multiple companies or organizations cooperating to develop new products or technologies.
License agreement: A formal agreement for a company to use external technology.
Differences between the term and related terms
Difference from closed innovation
Closed innovation is limited to in-house resources, so resources and perspectives are restricted. In contrast, open innovation can utilize external knowledge and technology, allowing for the incorporation of a wider range of ideas.
Difference from joint development
Joint development focuses on specific projects or product development, whereas open innovation is broader in scope and aims to utilize all types of external resources.
Difference from license agreement
A license agreement is a formal agreement to use specific technology, but open innovation includes broader cooperation that goes beyond this framework.