Closed vs. Open Innovation
The corporate view of innovation strategies has varied dramatically in the last half century. In the past, companies contended that success in innovation required internal guidelines and controls with strict adherence to corporate secrecy. Innovation was dominated by large companies with major investment in research and development. Huge amounts of resources were required to compete, therefore innovative policy was controlled by larger companies (J. Aylen, 2010). More recently there has been a dramatic shift which allowed for promotion of smaller companies without the requirements of large research and development costs that may prove to be prohibitive. Alternately, the technical knowledge base is retrieved from outside sources through investments in partnerships or relevant startup companies accessed anywhere along the value chain (H. Chesbrough, 2003). Both closed and open innovative strategies continue to exist and often oppose views of gathering knowledge, which influences creativity and inventiveness.
Since the advent of the industrial revolution in the 1800’s, innovation has been the cornerstone in the realization of an enhanced quality of life. Scientific discovery and advancement in technology have contributed much to societal evolution, and the strategies of the innovative process, both closed and open, have sought to best acquire and facilitate knowledge obtained through these methods. Businesses are acutely aware of this ever changing technology progression and the fact that profitability and success are dependent on speed of adaption to innovation. Products and services must be delivered in a timely fashion with enhanced benefits to the customer. In essence, corporate viability is linked directly to staying competitive by being continually innovative. This paper focuses on analysis of the two major innovation methods adapted by companies,...