Closed and open innovation model

In the 20th century, companies gained competitive advantage by funding their research labs. Many people have done basic research [usually undirected], developing new technologies, and spinning new products – even new ones. These proprietary, even monopolistic, products create huge profit margins and provide financial support for more research.

This is called "closed." Innovative model. Vertical integration of research and development In this innovative model, the barriers to entry into the market are enormous. In the early development of the model, market research played a small role.

Closed innovation concept

Only a portion of the completed research projects were submitted in patent form, and only a small portion of these patents were used in the development phase - no saleable products or lack of funds were found. No experts can look at technology and vision products. IBM abbreviated its initials at the atomic level to silicon, but at the time it was rare [if any] to achieve its leading position.

In many cases, companies have developed breakthrough technologies but have not been able to take full advantage of them. How about Xerox - they make photocopiers, aren't they? Yes, but they do more - this ' GUI' user interface concept was originally developed at Xerox's Palo Alto lab. It is Apple that has become a marketable concept in its "Lisa". computer. Then Microsoft's Windows ' followed by Apple's high heels, the rest is history - including litigation.

Although Apple has real product dreamer Steve Jobs, the company can't count on owning a company. Keeping technology within the company's boundaries limits the opportunity to leverage external expertise to generate visions and take advantage of cross-industry opportunities.

Other companies that can use proprietary technology through leasing will create a win-win situation for both. Similarly, the company itself can have licensed technologies created by other companies.

With the end of the 20th century, many significant failures to take advantage of technology opportunities have led to questions about closed innovation models, and the business landscape is changing, among which:

• Added options for unused technology.
• Increase the availability of venture capital.
• Improve the mobility of skilled and knowledgeable employees.
• Improve the availability of outsourced partners with high efficiency.
• Strengthen strategic market research on social, technology and lifestyle trends.
• This led to the concept of open innovation.

Open innovation

In this concept, the company's boundaries are porous. The company's unused technology is now licensed by other companies, saving revenue and time. Importantly, the company [the technology owner] is able to take advantage of market opportunities. Internal concerns are those that are useful to the company's core business - efforts and capital are not diluted.

Innovative business model

In business, technology is only useful if it is commercialized. The way to do this is:

• Use this technology in existing business operations.
• License technology to other companies.
• Use this technology to start a new joint venture.

These innovative business model options combine venture capital and economic output.

Technology owners can use them to test new products instead of treating entrepreneurs and venture capitalists as threats. Alternatively, they can bring the product back to the mainstream business.

Many large companies take the path of open innovation by acquiring startups or forming alliances; others have built their own internal venture capital teams to power their innovation processes.

The advantages of an open model are:

• The monetization of non-core technologies.
• Shorten the time to market for promotional technologies.
• Explore and harness multiple market potentials.
• An alternative business model for testing new product/service concepts.

Obviously, the flexibility of the open innovation model makes it so powerful, and it can well eliminate the shortcomings of closed models.

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