Open Innovation for Pharmaceutical Industry
Open Innovation is a term promoted by Henry Chesbrough, a professor and executive director at the Center for Open Innovation at Berkeley. The concept is related to (but distinct from) user innovation, cumulative innovation and distributed innovation.
The central idea behind open innovation is that in a world of widely
distributed knowledge, companies cannot afford to rely entirely on
their own research, but should instead buy or license processes or inventions (i.e. patents)
from other companies.
In addition, internal inventions not being used
in a firm's business should be taken outside the company (e.g., through
licensing, joint ventures, spin-offs).
In contrast, closed innovation refers to processes that limit the use
of internal knowledge within a company and make little or no use of
external knowledge. Some companies promoting open innovation include Procter & Gamble, GlaxoSmithKline and IBM.
Prior to World War II, closed innovation was the paradigm
in which most firms operated. Most innovating companies kept their
discoveries highly secret and made no attempt to assimilate information
from outside their own R&D
labs. However, in recent years the world has seen major advances in
technology and society which have facilitated the diffusion of
information. Not the least of these advances are electronic
communication systems, including the internet.
Today information can be transferred so easily that it seems impossible
to prevent. Thus, the open innovation model states that since firms
cannot stop this phenomenon, they must learn to take advantage of it.
It is the business model of the firm that determines what external information to bring inside, and what internal information to take outside.
Open innovation needs a different mindset and company culture than traditional or closed innovation.
Lot of people misunderstand
licensing for open innovation. Open innovation is more advanced business
concept where WEB2.0 and WEB3.0 technology is used for:
- Development of broad networks to coordinate innovation activity
(’creation nets’)
- Development of virtual research institutes
- Scanning the globe for ideas
- Crowdsourcing the globe for creative research talents and experts
- Reaching out to a specialist on a contract basis to solve a
particularly vexing research problem
- Forming a joint venture with other companies
- Forming alliances with universities and research institutes
- Co-developing products with suppliers
- Co-marketing products with distant competitors
- Licensing technology
- And more ...
Take a look into recent workshop about open innvoationheld in Brazil by Prof. Chesbrough
You can download the presenation at our Downloads section
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