Part 5. Product Innovation and Management
Published Online: 15 DEC 2010
Copyright © 2011 John Wiley & Sons, Ltd. All rights reserved.
Wiley International Encyclopedia of Marketing
How to Cite
West, J. 2010. Open Innovation. Wiley International Encyclopedia of Marketing. 5.
- Published Online: 15 DEC 2010
Inspired by studies of twentieth century vertically integrated corporate giants, the traditional model of industrial innovation assumed an internal pipeline of product innovation from R&D to manufacturing. However, the open innovation paradigm developed by Chesbrough extends this model, identifying existing and new practices in which innovation commercialization crosses firm boundaries. Open innovation considers two primary commercialization modes: the inbound in which firms use external sources of innovation, and the outbound in which firms find other ways to profit from internal innovation. Although most research has focused on for-profit dyadic exchanges between corporate actors, the paradigm subsumes a broader scope of pecuniary and nonpecuniary motivations at the individual, organizational, community, network, industry, or national level of analysis.
- industrial innovation;
- open innovation;
- business models;
- intellectual property;
- innovation commercialization