– By Farideh Bahrami
In the era of open innovation, the advantages of cooperation are growing.
Using Chesbrough’s argument that “not all smart people work for us,” businesses are advised to be receptive to innovation from outside sources and to shift emphasis away from solely internal R&D activities. However, adopting a proper “open strategy” is necessary to leverage such a concept.
Studies show that firms that do not cooperate and exchange knowledge lose their competitive advantage, as they reduce their knowledge base and lose the ability to enter exchange relations with other firms and organizations in the long run.
Although the era of open innovation has begun for many firms, we still need a clearer understanding of the mechanisms, inside and outside of the organization, and when and how to fully benefit from the concept.