It is often difficult for a company’s research and development group to find fresh, new and effective ideas for developing their products. Fresh ideas hardly evolve from the company’s long term staff because of their same kind of works and orthodoxies. Fresh knowledge and inspirations from outside researchers opens up the research to entirely new thoughts and suggestions.
Open innovation is a process about the way a company’s research and development should be conducted. The basic principles of open innovation are:
• The organization should collaborate with sensitive researchers.
• Internal R&D group of a company should contribute something to the ultimate result of the research developed by outside R&D group.
• Making profit should not be the only goal of the research.
• The final product should be used in the best way.
So according to these principles open innovation works best when the research follows the demand of product of a company not supply. But many innovations still focus on the supply. These innovations focused at building the supply using knowledge or innovation in a vacuum without the clear knowledge of the demand of the product and its markets.
Thus in order to use open innovation successfully a company should create an open innovation network(http://www.philoptima.org/
If a company uses it successfully then it can internally make profit and externally became an open innovation leader within the given industry.
