Open Innovation

Open Innovation: A New Paradigm for Managing technology demonstration to OECD Conference on New channel Strategies for R&D October 22, 2001 Henry Chesbrough Assistant Professor and Class of 1961 Fellow Harvard Business School A Closed Innovation System Science & Technology Base The Market look for Investigations Development New Products /Services R D The Virtuous Circle for R&D Fundamental Technology Breakthroughs change magnitude investment in R&D New Products and Features Increased Sales and Profits via existing business model The Payoff to Doing Research # of patents awarded # radical Research Articles The Payoff to Research - Pharma 2500 Merck 2000 No of Patents Hoechst/MMD 1500 Bayer Eli-Lilly 1000 Ciba-Geigy Pfizer Warner-Lambert Abbott DuPont B-M-S Hoffman-LaRoche Rhone-Poulenc 500 Burroughs-Wellcome 0 0 500 1000 1500 2000 2500 3000 3500 No of published articles Source: K.

Lim, interior(a) University of Singapore Hidden Assumptions in the Internallyfocused Innovation System If I hit it, I will find a market for it If I discover it first, I will get it to market first If I discover it first, I will own it The important technologies I will need can be anticipated in advance The best people in this field sue for us Shifts in the Research Environment Increasingly mobile trained workers more than capable Universities Knowledge distributed more widely Diminished US hegemony in many leading technology fields eating away of oligopoly market positions Deregulation Enormous increase in make Capital Xeroxs Innovation System Graceful Exits and Foregone Opportunities 45000 40000 35000 30000 25000 20000 15000 myriad 5000 0 19 78 19 79 19 80 19 81 19 82 19 83 19 84 19 85 19 86 19 87 19 88 19 89 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 US Dollars (millions) Xerox adobe Documentum Komag SynOptics VLSI 3Com Doc Sci... If you want to get a full essay, nightclub it on our website: Orderessay

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