Open Innovation: Striving for Innovation Success in the 21st Century

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Longstanding expert and pioneer in the field Professor Chesbrough feels there is much confusion surrounding what open innovation is exactly, and he goes on to define it as “the use of purposive inflows and outflows of knowledge to accelerate internal innovation and expand the markets for external use of innovation.” He continues by explaining and giving examples of “outside-in and inside-out” open innovation models. Chesbrough sees open innovation expanding well beyond simple collaboration between two firms and he believes designing and managing innovation communities will become increasingly important for the development of open innovation. In this way open innovation’s effectiveness is not restricted to a few select corporations; it makes more effective use of internal and external knowledge in every single type of organization.