Principles of open and closed innovation
| Categories of principles | Closed innovation principles | Open innovation (OI) principles |
|---|---|---|
| Human resources (HR) | The smart people in the field work for us | Not all the smart people work for us, so we must find and tap into the knowledge and expertise of bright individuals outside our company |
| Research and development (R&D) | To profit from R&D, we must discover it, develop it and ship it ourselves | External R&D can create significant value: internal R&D is needed to claim some portion of that value |
| Commercialisation | If we discover it ourselves, we will get it to the market first | We do not have to originate the research to profit from it |
| Business models | The company that gets an innovation to the market first will win | Building a better business model is better than getting to the market first |
| Idea creation | If we create the most and the best ideas in the industry, we will win | If we make the best use of internal and external ideas, we will win |
| Intellectual property (IP) | We should control our intellectual property (IP) so that our competitors do not profit from our ideas | We should profit from others' use of our IP, and we should buy others' IP whenever it advances our business model |
| Categories of principles | Closed innovation principles | Open innovation (OI) principles |
|---|---|---|
| Human resources (HR) | The smart people in the field work for us | Not all the smart people work for us, so we must find and tap into the knowledge and expertise of bright individuals outside our company |
| Research and development (R&D) | To profit from R&D, we must discover it, develop it and ship it ourselves | External R&D can create significant value: internal R&D is needed to claim some portion of that value |
| Commercialisation | If we discover it ourselves, we will get it to the market first | We do not have to originate the research to profit from it |
| Business models | The company that gets an innovation to the market first will win | Building a better business model is better than getting to the market first |
| Idea creation | If we create the most and the best ideas in the industry, we will win | If we make the best use of internal and external ideas, we will win |
| Intellectual property (IP) | We should control our intellectual property (IP) so that our competitors do not profit from our ideas | We should profit from others' use of our IP, and we should buy others' IP whenever it advances our business model |
Source(s): Adapted from Chesbrough (2003)