Open Innovation – The New Commercialization Model

Today it is more than just inventing new products, services and technologies.  Innovation is about reinventing business processes and building entirely new markets that meet untapped customer needs.  That’s the core of Open Innovation, a term promoted by Henry Chesbrough a professor and executive director at the Center for Open Innovation at Berkeley.   The core idea behind open innovation is that in a world of widely distributed knowledge, business and entrepreneurs must adapt their business models to make them more open to external ideas and paths to market. Open Innovation is the process in which a firm or entrepreneur works with external partners (customers, suppliers and yes, even competitors) to both commercialize their internal innovations and to obtain a source of external innovations that can be commercialized through licensing agreements. The Internet and globalization has widened the pool of new ideas, and the challenge is about selecting and executing the right ideas and bringing them to market in record time. Several companies currently operate as Open Innovation intermediaries including QuirkyInnoget, Novitate,InnoCentiveInnovationXchangeNineSigma, Innovation Exchange , Hypios,   PRESANS  among others.

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