L4- open innovation

Question 1

open innovation def

Answer 1

a paradigm that assumes a firm can & should use external + internal ideas, and ext+int paths to market whilst looking to advance tech

Question 2

inbound open innovation

Answer 2

(outside-in), innovating firms link w other orgs/indiv to access ext knowledge to advance innovation

Question 3

outbound open innovation

Answer 3

(inside-out), innovating firms establish links w other orgs / indiv to commercially exploit internal ideas/techs & expand markets for ext use of innovation

Question 4

sourcing

Answer 4

firms scan the ext env before initiating internal R&D to source tech / knowledge / free ideas

Question 5

acquiring

Answer 5

firms complete market transactions to use ext expertise whilst innovating (contests, prizes etc)

Question 6

selling

Answer 6

firm X captures value from its tech & other resources by allowing firm Y to make use of Xs innovation activities in exchange fro money (e.g. out licensing, selling specialised knowledge)

Question 7

revealing

Answer 7

firms reveal internal resources to other firms w/o immediate financial rewards to capture value from their innovation & help others innovate

Question 8

adjustment costs

Answer 8

cost of transferring existing resources to new areas of operation

Question 9

open innovation effect on adjustment costs

Answer 9

higher OI = lower unit adj costs

Question 10

co-ordination costs

Answer 10

mainly from mgmt of partnership portfolio (ID, initiation, & more)

Question 11

when are co-ord costs increasing & decreasing

Answer 11

increasing when open innovation partners increase, decrease when focus on limited business activities and small no partnerships is clear

Question 12

open innovation graph shape

Answer 12

S

Question 13

closed innovation and medium open innovation levels on financial returns

Answer 13

high

Question 14

closed innovation and high open innovation levels on financial returns

Answer 14

low

Question 15

where to search for external ideas

Answer 15

top 10 consumer needs, adjacencies, tech game boards

Question 16

how to network

Answer 16

proprietary, open networks (complement proprietary)

Question 17

how to screen external ideas

Answer 17

routines & rituals; NineSigma, InnoCentive, YourEncore, Yet2.com

Question 18

Ringel on OI

Answer 18

external innov doesn’t work bc ur doing it wrong, no correlation btw R&D and external innovation, and companies must listen to scientific info