Open Innovation

1. Ideas
2. Paths to Market
3. Outside In
   1. Cost Efficiency: Leveraging others to do your own activities whilst you only pay for the part that you are using
   2. Time Saving: You can start in the middle with outside organisations/contributors, avoiding the beginning where you encounter loose ends and blind alleys that are associated with any extensive research project. Instead you only work with ideas which have already been demonstrated and tested.
4. Inside Out
   1. Sharing ideas allows you to construct value chains from suppliers, yourself, your downstream distribution to the final consumer thereby attracting people in parts of the ecosystem that you wish to stimulate.
   2. Royalties: R&D becomes more economically stable because its usage doesn't have to be restricted to just your own business, it is opened out to others. R&D spillovers are purposive mechanisms for tapping into external knowledge and exploiting internal knowledge.

1. Old - Closed
   1. Tech driven
   2. Ownership
   3. Internally generated
   4. Chess
   5. Market Push/Idea Driven
   6. Not-Invented-Here (NIH) Not-Sold-Here (NSH)
2. New - Open
   1. Market Pull/Need Driven
   2. Business value-driven
   3. Access
   4. Integration of internal and external ideas
   5. Poker
   6. Collaboration, motivation, incentives and rewards

1. Good ideas are widely distributed - No knowledge monopoly.
2. External pool of talents.
3. Availability and mobility of skilled workers.
4. External capabilities - ecosystem/networks: Suppliers, users, customers.
5. IP Management.
   1. Profit from our IP
   2. Access external IP to fuel our business
6. Growth of Venture Capital Market: Chess & Poker.

1. Value Creation
2. Value Capture

1. Tech Platforms
   1. Providing a technological platform from which other companies can grow.
2. Contests & Tournaments
   1. Generate breakthroughs by stimulating diversity in a number of areas. Competitions generate many solutions to one problem, It only takes one "outlier" to open up a new direction.
3. Polycentric
   1. Networking international talent, capital and ideas to meet global demand for new products and services.
      1. John Deere - 5003 Tractor Series
4. Partnership & Alliances
   1. Enhance systems & capabilities of companies. It may also make companies more nimble in the marketplace.
5. Frugal/Jugaad
   1. Better solution for more people, using fewer resources, by doing things completely differently.
      1. Tata Nano (Jugaad)
      2. Narayana Health (Frugal)
6. Crowdsourcing
   1. Obtaining required services, ideas or content by soliciting contributions from a large group people (online community).

1. University-Industry Alliance
   1. Challenges
      1. Time availability
      2. Unrealistic expectations on IP
      3. High research cost
      4. University bureaucracy
      5. Different mindset/culture

Annotations:

•  Firms, agencies or individuals that facilitate innovation by providing bridging, brokering, knowledge transfer services between organisations to help accelerate their innovation.

1. Organisations that bridge the gap between firms that seek solutions and innovators that can provide such solutions.

1. Time and skills for:
   1. Screening external ideas
   2. Managing OI
   3. Leadership of OI
2. NIH & NSH Syndromes
3. IP protection vs exploitation vs commercialisation
4. Managing change
5. Alignment with business model