Open Innovation x Closed Innovation – Know the differences

return Posted in 19 de March de 2021

Open Innovation x Closed Innovation – Know the differences

The opening of the business to external innovations comes to broaden horizons, to provide more ways to continue developing and competing in a market that demands more and more inventiveness. So, know what are the main differences between Open and Closed Innovation and understand the new model.

What is Open Innovation?

Open Innovation is a change in the business vision in relation to research and new products. In other words, companies start to open up to listen to their partners within their own institutional environment (areas of production, sales, field services and others) and outside that environment, considering cooperation with universities, research institutes, suppliers and even the company itself. consumer

In 2003, Henry Chesbrough released his book Open Innovation: How to create and profit from technology. At that moment, the researcher introduced a new way for companies to innovate on the market. Thus, open innovation has the role of accelerating the innovation process within organizations, since the limits of companies are expanded, making internal resources and ideas accessible and didactic with external collaborators.

Open Innovation can happen through programs connecting universities and researchers, startups and emerging technologies, in addition to hacktowns and technological challenges. All of these practices seek not only to solve complex problems, but also to enhance the positive results.

What is Closed Innovation?

If we look very carefully at the topic, we will see that Closed Innovation, as a concept, is practically impossible. It will always be necessary to look outside, to seek references and external knowledge. Therefore, it is better to talk about Closed Innovation strategy.

A company that chooses to keep its innovation efforts closed has its projects developed only within clearly defined limits. Know-how, technology, processes and intellectual property remain under its own control. That is, without collaboration with other market agents or universities, for example.

According to Professor Henry Chesbrough himself, Closed Innovation is based on the view that innovations are developed internally. From generating ideas to developing and marketing, the process takes place exclusively within the company.

Differences between Open Innovation and Closed Innovation?

Open Innovation seeks the best, wherever it is – knowledge-aware import and export to improve and accelerate its own innovations. It promotes the exchange of ideas and experience beyond the limits of the company.

Organizations take advantage of their best talents and seek reinforcements in the market (in universities, consultancies, business partners, etc.). They generate maximum use of internal and external ideas. The leadership of the competition is not in offering the best ideas, but in making the most of the ideas that come up. The north is the development of a better business model, not of being the first in the market to innovate.

Closed Innovation is based on the belief that solutions can emerge from the available internal resources. The ideas usually come from the project managers and their followers. Because of these characteristics, it is necessary to guarantee the hiring and retention of the best talents (researchers, technicians, specialists, etc.), which is often very expensive. There is a strong belief that to lead the competition, it is necessary to offer the best ideas. The winner is the one who brings innovation to the market first.

How to migrate to Open Innovation?

The first step if you want to migrate to Open Innovation is to keep an open mind for new horizons. You need to analyze your company every day to see what can be improved, when and how. Innovative options come up every day and we get used to letting them pass. But educate your eyes to notice all the new ideas and think: “how can this be beneficial for my business?”

In addition, the world’s greatest entrepreneurs have a history balanced between successes and failures. In other words, not all of your attitudes will necessarily result in successful business moves. Making mistakes is human, it is acceptable and knowing how to react to them is what makes the difference.

Also find out what innovation hubs are and how they can generate results for large companies.

*Esse texto foi traduzido com a ajuda do Google Translator

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