HBR IdeaCast How to Capture All the Advantages of Open Innovation
Jan 28, 2020
Henry Chesbrough, a leading mind behind open innovation and professor at UC Berkeley, discusses the importance of sourcing ideas beyond company walls. He highlights that while Silicon Valley thrives economically, companies struggle with collaboration, leading to fewer innovative products. Chesbrough addresses the complexities of implementing open innovation and the societal divides it creates. He also critiques the role of venture capital and stresses the need for effective government support to unlock the full potential of innovation.
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Open Innovation Defined
- Open innovation is a distributed process involving knowledge flows across organizational boundaries.
- It uses monetary and non-monetary reasons aligned with a business model.
The Exponential Paradox
- A paradox exists: technology accelerates, but productivity and wage growth stagnate.
- This is due to lack of investment in innovation infrastructure, which disseminates and absorbs new ideas.
Pharma's Unused Patents
- Pharmaceutical companies, like Bayer, often patent numerous compounds but rarely license them out.
- This creates a large pool of unused knowledge and capabilities.
