Open Innovation a New Paradigm in Innovation Landscape: An Analytical Overview

Abstract

How to innovate and how the innovation process can be managed has been a topic of immense curiosity, lately. In 2003, Chesbrough came up with the concept of "open innovation” which has been positively embraced by large number of organizations in the world. This conceptual paper presents an overview of open innovation in the massive landscape of innovation and advocates open-innovation modalities based on fundamental requirements, modes of open innovation and outcome of open innovation for firms. The findings reveal that firms can prepare themselves for open innovation by developing fundamental requirements which are the first step for infusing open innovation in an organization to shift from a closed to an open innovation system which are organizational transformation, cultural change, building absorptive capability, and complimentary assets. The findings also reveal that firms could practice open innovation in their business domain via technology transfers, accessing funding, accessing suppliers supports, user supports and institutional supports which make them to benefit in form of more access to resources, exploring hidden potentials, developing new skills set for employees, lower project cost, new innovative products, and growth and development.