Open Innovation

One hundred years ago, and even fifty years ago, the distribution of knowledge and technology in the U.S. was extremely uneven. Learning and technological know-how were highly concentrated in relatively few powerful places: big companies, major universities, and national governments. As Hank Chesbrough describes, these were 'fortresses of knowledge in a barren landscape.' These conditions led large, successful companies to generate their own research, develop their own technologies supporting all aspects of their business, and to hoard those technologies if they were not immediately usable. Much has changed. The information revolution has made for a radically more fluid knowledge environment, and the growth of venture capital has created inexorable pressure towards fast commercialization of existing technologies. Companies that don't use the technologies they develop are likely to lose them. Over the past several years, Hank Chesbrough has done excellent research and writing on the commercialization of technology and the changing role and context for R&D. This book represents a powerful synthesis of that work in the form of a new paradigm for managing corporate research and bringing new technologies to market. The core idea of Open Innovation is that the old model of internally generated corporate research is no longer tenable. In the new, fluid knowledge environment, company R&D departments must shift and expand their role as generators of research to one of knowledge brokering and integration; technology cannot be viewed as valuable in itself, but as having only contingent value in relation to the business model (and Chesbrough will reexamine the idea of the business model itself in light of this new paradigm); relatedly, companies can no longer afford to hoard technology, but must instead focus on leveraging multiple paths to market. Chesbrough impressively articulates his ideas and how they connect to each other, weaving several disparate areas of work'R&D, c orporate venturing, spinoffs, licensing and intellectual property'into a single coherent framework.The information revolution has made for a radically more fluid knowledge environment, and the growth of venture capital has created inexorable pressure towards fast commercialisation of existing technologies. Companies that don't use the technologies they develop are likely to lose them.Over the past several years, Hank Chesbrough has done excellent research and writing on the commercialization of technology and the changing role and context for R&D. This book represents a powerful synthesis of that work in the form of a new paradigm for managing corporate research and bringing new technologies to market.Chesbrough impressively articulates his ideas and how they connect to each other, weaving several disparate areas of workĹźR&D, corporate venturing, spinoffs, licensing and intellectual propertyĹźinto a single coherent framework.