Home / Summaries / Class notes - DIVO / innovation-companies-market

Papers - Chesbrough - The Era of Open Innovation

30 important questions on Papers - Chesbrough - The Era of Open Innovation

What is the philosophy of the closed innovation model?

Successful innovation requires control. Companies must generate their own ideas that they would then develop, manufacture, market, distribute and service themselves

What is meant with a 'virtuous cycle of innovation' in the closed innovation model?

Heavy R&D investing, getting the best people that discoverd great innovations, allowing them to get to market first, reaping great profits by protecting their Intellectual Property, reinvesting their profits heavily in R&D, and then more break through discoveries

What are the factors that erode the underpinnings of closed innovation in the US?

  • Rise in the number of knowledge workers; making it difficult to control proprietary ideas and expertise
  • A growing availability of private venture capital; helped finance new firms and the commercializing of their ideas outside of the silos of corporate research labs
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart
Testimonial person
Sophia
Law student
Quotes

For my 1st exam I got a C. Then, I started looking for ways to learn better and I came across Study Smart. Since then I have scored a A+, A, A- and another A. I highly recommend it to everyone who wants to hear it. I am so happy with it!!

Testimonial person
John
Economics Student
Quotes

I was struggling to finish all my first-year subjects for 3 years. Then I discovered Study Smart, which helped me to finish all of them within 3 months.

Testimonial person
Sara
Public Administration Student
Quotes

Because of StudySmart, things are going well in many ways. Before, I always had study stress and no time for anything. Now I feel calm and confident (because of the program). I used to score a B, now I usually score an A or A+.

Testimonial person
Mary
Business Student
Quotes

Hey Chris, I really want to thank you very much for developing the platform, I usually got around C for my exams, now I scored an A+, an A and a A- !!

Testimonial person
Melanie
Psychology Student
Quotes

Since using Study Smart, my average has increased significantly. I even completed a statistics course with a A+ while I'm bad at statistics. I took on extra courses this year, because of Study Smart. Thanks so much!

Testimonial person
Jane
Nursing Studies
Quotes

Ever since I started studying with StudySmart I passed all my exams !!! No more re-sits!! At first, I was happy with a pass and now I only get good grades. Many thanks!

Testimonial person
Rose
Political Science Student
Quotes

I aced all the courses I studied with Study Smart. For law, I first scored a D, and now an A! I’m 100% sure that I’ll pass all the courses I study with Study Smart.

Testimonial person
Tina
Medicine Student
Quotes

I always thought I studied well. My grades were fine. I could never have imagined that applying these study skills would have such a huge and direct impact on my grades, my speed and the pleasure I have in learning.

Testimonial person
Julie
Marketing Student
Quotes

For the first time, I finally feel totally confident about the way I learn. I have the perfect overview and make great progress in terms of speed and the grades I get. Thanks, Chris!

Testimonial person
Matt
Industrial Engineering Student
Quotes

I immediately started to enjoy learning again, and my grades soared. All of a sudden, everything went better. I highly recommend Study Smart to all students..

Testimonial person
Emma
Law Student
Quotes

Being able to create my materials online made the process of studying so much smoother and quicker. I no longer have to spend a huge amount of my time on creating my summaries.

Testimonial person
Michael
Psychology Student
Quotes

At first, my notes were a mess. Now I use Study Smart to take my notes in a perfectly structured way. It helps me to save a lot of time and do other things I enjoy.

Testimonial person
Emily
Teacher
Quotes

Students that study with Study Smart get better grades. The system applies all the learning methods in such a way that both well-performing students and students who struggle perform much better.

Testimonial person
Richard
Literature Student
Quotes

Hi Chris, I would like to thank you very much. Last year I scored C on a course, and this year I got an A+ thanks to your method! Thank you very much!

Testimonial person
Madison
Parent
Quotes

The largest effect is that my child is more enthusiastic about school! Every parent wants their children to be happy at school, Study Smart made it happen.

Testimonial person
Robert
Accountant Student
Quotes

In high school, I failed several exams, and that has really changed now. I actually needed this tool very much back then. Since I started studying with StudySmart, I haven't had any D's. My average score is now an A and those are results I would have never had in the past

Testimonial person
James
Business and Science Student
Quotes

With my old method, I passed only 3 out of 8 courses. Since I started taking my notes digitally in Study Smart, I have passed all my courses on the first try. For me, StudySmart takes away the stress of wondering if I will pass or not.

Testimonial person
Christopher
Veterinarian Student
Quotes

Thanks to StudySmart, I passed all my exams, and with better grades than before! On top of that, I have mastered a very good study method now, which I am confident will help me earn my degree.

What is one major difference between closed and open innovation?

How companies screen their ideas, false positives (bad ideas that initially looked promising) are in both instances 'weeded out', however, open innovation incorporates the ability to rescue these false negatives.

Why do companies that have closed innovation miss out on the opportunities of 'false positives'?

Closed innovation companies are often focussed too internally, many of these opportunities fall outside of the organisation's current business or will need to be binded with external technology to unlock their potential, thus need open innovation

What is an example of a 'false positive' that turned out as surprisingly valuable?

Xerox and their Palo Alto Research Center (PARC), developing Ethernet and the GUI.

What is an example of an industry that will probably not migrate towards open innovation?

The nuclear reactor industry, as they depend heavily on internal ideas, have low labor mobility, little venture capital, few and weak startups, and little research on universities.

What are the closed innovation principles?

  • The smart people in our field work for us.
  • To profit from R&D, we must discover, develop and ship it ourselves.
  • If we discover it ourselves, we will get it to market first.
  • If we are the first to commercialize an innovation, we will win.
  • If we create the most and best ideas in the Industry, we will win.
  • We should control our intellectual property (IP) so that our competitors don't profit from our ideas.

What are the open innovation principles?

  • Get knowledge and expertise from outside the company, as they no longer all work for us.
  • External R&D to create significant value; internal R&D to claim some portion of that value.
  • We don't have to originate the research in order to profit from it.
  • Better business model over getting to market first.
  • Making the best use of internal and external idea to win.
  • Profit from others' use of our IP, and buy others' IP whenever it advances our own business model.

What are the three primary areas where companies have focused their activities to exploit open innovation?

Funding, generating or commercializing innovation

What is the Innovation Investor?

Originally, the innovation investor was the Corporate R&D budget. Nowadays, Venture Capital (VC) firms, angel investors, corporate VC entities, private equity investors etc, have taken over that role

What is the role of the innovation investor?

Their capital helps move ideas out of corporations and universities and into the market, typically through the creation of startups. They also provide valuable advice on avoiding start up growth problems.

What are some examples of innovation benefactors?

The National Science Foundation, companies that want a first look at promising ideas, philantrophy from private foundations.

What is the role of the innovation benefactor?

They provide new sources of research funding, but unlike investors, benefactors focus on the early stages of research discovery. Usually funding ideas that are favorable for their own industry.

What is the role of the innovation explorer?

They specialise in performing the discovery research function that previously took place in corporate R&D laboratories.

What is the role of the innovation merchant?

They also explore, but their activities are focused on a narrow set of technologies that are then codified into intellectual property and aggressively sold to (and brought to market by) others.

What is one of the main differences between innovation explorers and innovation merchants?

Merchants will innovate, but only with very specific commercial goals in mind, whereas explorers tend to innovate for innovation's sake

What is one of the major downfalls of innovation merchants?

They rise and fall based on the strength of their IP portfolios.

What is an example of an innovation merchant company?

Qualcomm, they conduct extensive internal research on telecommunications, licensing various technologies, and producing associated chipsets for other manufacturers

What is the role of innovation architect companies?

They create value for their customers by developing architectures that simplify the complexity of technology worlds, and enabling other companies to provide pieces of this architecture.

What is an example of an innovation architecture company?

Boeing, they engineer the overall design of an aircraft. Then other companies can provide parts within the aircraft.

What is an important element of success for the innovation architect?

They must create a way to capture some portion of the value they create, otherwise it is impossible to sustain and advance their developed architecture

What is the main difference between innovation missionaries and the architects and merchants?

The missionaries are creating and advancing technologies on the basis of their ideological mission rather than seeking profits, which merchants and architects seek

What are the two types of organisations that bring innovations to market?

Innovation marketers and one-stop centers

What is the role of the innovation marketer?

They have overlap with regard to the other types of innovation organisations, but their defining attribute is their keen ability to profitably market ideas, both their own as well as others

What is the role of the innovation one-stop centers?

They provide comprehensive products and services, taking the best ideas and delivering those offerings to their customers at competitive prices

What is the difference between innovation marketers and innovation one-stop centers?

They both thrive by selling others' ideas, but innovation one-stop centers differ in that they form strong end users connections

What are fully integrated innovators?

Companies that focuss on all three areas of innovation, funding, generating, and commercializing

What are some challenges innovation merchants face?

  • They must figure out how to gain access to complementary assets needed to commercializa an innovation
  • Laws for IP are not well defined, making it risky for merchants to limit their revenue streams solely to the marketing of their IP

What are some challenges innovation architects encounter?

  • The abundance of ideas makes it difficult to create useful systems
  • Finding the balance between creating value and the need of capturing a portion of that value

Try our study magic for free

a PDF, study it super fast
  • No sign up, email or credit card needed!
  • AI makes unlimited flashcards
  • Get unlimited quizzes and tests
  • Ask AI anything
Create a notebook
  • No sign up, email or credit card needed!
  • Have and keep perfect overview
  • Make flashcards, notes and mind maps
  • Review, test and score!

The question on the page originate from the summary of the following study material:

DIVO

View summary
  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo

Summaries related to The Spatial, Temporal, and Configurational Characteristics of Geographic Dispersion in Teams - O'Leary et al