Open Innovation

Henry Chesbrough - American professor - coined the term.

• According to him, OI is “The idea that organisations should make much greater use of external ideas and technologies in their own innovation activities on the one hand and on the other hand a lot of their own internal unused ideas and technologies should be allowed to go outside for others to use as well”
• Three Models:
  • Inside out
  • outside in
  • Coupled
• Companies are ready for Outside-In
• They are not ready for Inside-out not because they fear out that their unused tech go out and fail. But they fear that their unused tech may out and became successful. It creates awkwardness and embarrassment among the internal people.
• But the Inside out will happen in Universities, small startups and individual because it is an exit for them, this is their opportunity to get some reward and move on to their next thing. They don’t see them as a Inside out but they see them as a successful outcome.

Open Innovation vs Open Source:

• In Open Innovation, how you bring in value and how you let go of the values are framed by the business model of the organisation

• But it Open Source, its been crafted to deliberately avoid a business model has been formed around it.

• Sometimes a better business model will beat the better technology

• Companies that are trying to take their businesses from one region or one country to new regions, a very common problem is that they not only take the product and the technology, but they take the business model with them as well. What needs to happen is you need to have different business model which is attuned to the local region

• Qn: What would you like to see happen and what you think is going to happen around this whole space of OI?

• Ans: I believe one of the fundamental philosophical underpinning of IO is the idea of abundance that we are not in the world of scarcity we are in a world of abundance when it comes to knowledge and useful stuff all around us. I would like to explore in my future work is what are the public policies that can enable this and what public policy should we stop doing that might be getting in the way of this. There are lot of ways and a lot of business models for people to create and engage in value and then capture a piece for themselves we need enough protection for people to be able to make those initial investments. we want to keep the protection to low enough that these other business models have a chance to flourish and let consumers decide how best to enjoy the fruits of people’s knowledge