Open Innovation and Organizational Boundaries: The Impact of Task Decomposition and Knowledge Distribution on the Locus of Inno

February 3, 2012 By Karim R. Lakhani and Michael L. Tushman

ABSTRACT:
In this paper from Harvard business school the concepts behind implementing open innovation, and setting boundaries that accommodate it, are examined.

The authors say that debates must move beyond open vs. closed boundaries to a point where firms simultaneously pursue a range of options for innovation and organizational design including open boundaries and open innovation. They say digitization and the increasing number of people who can participate in knowledge production at very low costs may lead to open innovation crowding out traditional forms of intra-firm innovation. This will have a profound implication for the design, boundaries, and identity of firms.

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