Open Innovation: The New Imperative for Creating and Profiting from TechnologyIn today's information-rich environment, companies can no longer afford to rely entirely on their own ideas to advance their business, nor can they restrict their innovations to a single path to market. As a result, says Harvard Business School Professor Henry W. Chesbrough, the traditional model for innovation--which has been largely internally focused, closed off from outside ideas and technologies--is becoming obsolete. Emerging in its place is a new paradigm, "open innovation,"which strategically leverages internal and external sources of ideas and takes them to market through multiple paths. This path-breaking analysis is based on extensive field research, academic study, and the author's own longtime experience working in Silicon Valley. Through rich descriptions of the innovation processes of Xerox, IBM, Lucent, Intel, Merck, and Millennium, and the many spin-offs that have emerged from these firms,Open Innovation shows how a company can use its business model to identify a more enlightened role for R&D in a world of abundant information, better manage and access intellectual property, advance its current business, and grow its future business. Arguing that companies in all industries must transform the way they commercialize knowledge, Chesbrough convincingly shows how open innovation can unlock the latent economic value in a company's ideas and technologies. |
Contents
The Closed Innovation Paradigm | 21 |
The Open Innovation Paradigm | 43 |
The Business Model | 63 |
From Closed to Open Innovation | 93 |
Open Innovation Intel | 113 |
Creating New Ventures out of Internal Technologies | 135 |
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Common terms and phrases
3Com activities advance architecture areas Bell Labs business model business unit capture value chapter chips Closed Innovation paradigm commercial company's components copier cost create current business customers discoveries dominant logic employees equipment erosion factors Ethernet external knowledge external technologies firms funding hardware Harvard Business School Henry Chesbrough IBM's important industry initial innovation process Intel Capital Intel's approach Intellectual Property internal R&D internal research Internet interview with author investments knowledge landscape laboratory leading leverage licensing Lucent Lucent Technologies managing IP ment microprocessor Millennium million Moore's Law nology NVG's offering Open Innovation opportunity organization pany path to market percent portfolio potential profit programs research projects result revenues risk semiconductor spin-off companies start-up companies strategy success suppliers targets tech technical tion U.S. patents universities value chain value network value proposition venture capital venture capitalists Xerox Xerox PARC Xerox's business