Industry penetration: from pioneers to mainstream
. The opening up of the innovation process has become increasingly popular in leading industries. The principle of open innovation has, for example, penetrated pioneering industries such as software, electronics, telecom, pharma and biotech, while the software and electronics industries are progressively building on the open innovation trend (Chesbrough, 2003
). In software, the open source trend has been so strong that even previous, rather monolithic, organizations such as SAP and Microsoft have started to build decentralized research labs on university campuses to increase their absorptive capacity for outside-in innovation processes. Even Apple, with its strong position and high acceptance among its brand community, had to open up its proprietary technology to its addicted high-tech users. Prominent examples in the electronic industry are Philips' open innovation park, Xerox's Palo Alto Research Center, Siemens' open innovation program and IBM's open source initiatives. Today, many electronic suppliers drive open innovation on a strategic level. British Telecom's incubation activities have long been adopted by Deutsche Telecom and Swisscom. The pharma and biotechnology sectors too have a broad spectrum of open innovation models. Open innovation starts with simple outsourcing deals with contract service organizations to reduce overcapacities, cut costs, grow through complementary assets or reduce risks. More strategic modes of open innovation have already become a standard in the pharma industry, for example, Bayer with its Creative Center, Eli Lilly and its Innocentive Initiative, and Pfizer with the in-licensed drug Lipitor. Its overwhelming success has further disseminated the open innovation model to other industry players. Lipitor became the first pharmaceutical product to top US$10 billion in annual sales (Gassmann et al., 2008
). Overall, the trend toward open innovation is still growing. There are many reasons for driving open innovation (see, e.g., Chesbrough, 2003; Gassmann, 2006
), but there is also a bandwagon effect: in our executive education programmes, we have observed that CTOs with closed innovation models and strong internal R&D are under increasing pressure to justify their refusal to cooperate with the outside world and exploit the open innovation wave.