Pros and Cons of Open Innovation

Aug-18-13

The biggest claim of Open Innovation is reduced R&D costs. Innovators can be compensated through potential partnerships cutting out guaranteed salaries.

Additionally it helps company's R&D to think out of the box. A problem well stated is a problem half solved and often leads to solutions. Reduce the risk factor by learning what is successful in the market like the Kodak example of cost of not doing something.

Cost of innovation campaigns is high with costs of evaluation, development, legal and intellectual property rights and effort of selling the idea into the company. Successful open innovations are few. It is more suited perhaps for big companies.

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