Open Innovation is a concept directly related to the Licensing business model, and if you are new to inventing and product development you need to understand the concept if you decide to license. Watch these two videos to gain a better
understanding on the subject.
Open innovation means that businesses and organizations source or accept submissions of problem-solving products from external sources i.e. outside of the company.
Essentially Open Innovation is where an organisation does not only rely on their own internal knowledge, sources and resources (such as their own staff or R&D for example) for innovation (of products, services, business models, processes etc.)
OPEN INNOVATION is a CRITICAL part of the Product Licensing Process … IP ownership, rewards/royalties and more.
Open-innovation is a new concept to companies in South Africa, more so when it comes to licensing products and bringing them to market as they do elsewhere in the world.
Still, companies are beginning to share information more openly these days, intra-company, inter-company and between experts, but it is those companies that accept the submission of ideas from outside parties that are most useful to the Inventor.
By the way, OPEN INNOVATION
is not the same as OPEN SOURCE.
The benefits of open innovation for a ‘Corporate’ include:
• Access to talent external to the company.
Save staffing/research costs.
• Tapping into the power of co-creation from
an independent source.
• Reducing costs, risks and timescales.
• Creating new revenue streams from
• Increasing competitive advantage.
Companies are keen to remain competitive.
You need to understand the requirements and systems and policies of open innovation companies and why the licensing process takes so long – any company will likely check your idea against most of the factors illustrated.
An Open Innovation company always looks for a long-term relationship with an Inventor or Product Developer who takes the time to understand their business.
Here follow some EXTRA VIDEOS for your information on the definition of Open Innovation … but if you search
the internet, you will find many others if this subject interests you. There are many to choose from!