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Open Innovation Vs. Closed Innovation

Innovation has great changes in last years. In past, Innovation limited to development and research for the company is a main rule of innovation but increased demands are often better suited by opening up innovation to the outside world. Then we will discuss here the difference between open innovations and closed innovations.

Open Innovation

It is used to raise the technology field used by stakeholders such as partners, suppliers or customers to display and develop new ideas and face new challenges. with open innovations, Company resources could combine with external co-operators. It has many examples such as:

  • Quirky.
  • Samsung.
  • Local Motors.
  • United Genomes Project.
  • Lego.
  • Mozilla.

 open innovation

Closed Innovation

It is found in closed environments used by individuals, scientists or employees. it is based on the view that innovations are developed by companies themselves.  The example of it is when they develop a new iPhone and there is nothing about it that they release until the product is officially launched. They also use open innovations when they solve problems in collaboration with others and by empowering other people and organizations.

closed innovation

Open Innovation Vs. Closed Innovation

After we discuss separately each type of innovations, we will discuss differences between them depend on some features as follow:

Open Innovation Vs. Closed Innovation

Company philosophy

  • Open exchange knowledge to improve and speed innovations.
  • Close grow from the company’s internal resources.

Innovations Ideas

  • Open exchange of ideas out of the company frontier.
  • Close exchange of ideas internal the company.

Role of the customer

  • Open Active co-innovators.
  • Close Passive recipients.

Mobility Employees

  • Open high.
  • Close low.

Venture Capital

  • Open it play the main role.
  • Close it play the immaterial role.

Qualified Persons

  • Open company deals with qualified people outside and inside.
  • Close it is important to deal with a qualified person.

Role of R&D

  • Open External R&D can create significant value, but internal R&D is still needed to capture part of this value.
  • Close design, development, and marketing of in-house innovations.

Competition 

  • Open make the most of internal and external ideas.
  • Close offer the best ideas counter to open.

Intellectual Property

  • Open A competitive advantage can be created and profit can be generated by others using their own intellectual property.
  • Close protection of intellectual property was intended to protect the company’s ideas and research from the theft of ideas by other companies.
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