One of the hottest topics in business management today is open innovation. The concept uses an open business model for companies to “co-innovate” with their partners, suppliers, and customers – in order to accelerate the rewards of innovation. For example, a small or midsized company develops a game-changing new idea and works with a larger company to bring the product to market.
Through the collaborative relationship of open innovation, companies are able to leverage new ideas and products, and conduct experiments at lower risk levels. However, open innovation does bring up some concerns, like who owns rights to the intellectual property (IP). Open innovation should be conducted in a manner that promotes mutual trust and respect. It can be a double-edged sword when the larger company insists on owning the IP in exchange for their investment. The open innovation relationship can be a tricky one to navigate.
To read the original article: Managing the Uncertainty of Open Innovation
