In a time of scarcity, companies are increasingly deploying openness to drive innovation and success
“This way, all of the world's smartest people work with you”
Open innovation is an atmosphere of co-ideation, collaboration and co-creation. It is where competitors, producers and consumers, academia, and practitioners work under one roof to bring out the best in every process, service or product.
External ideasInternal ideas=
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Increased creativity
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Ability to monitor technological change
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Ability to take advantage of market opportunity
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Access to new competencies and know-how
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Ability to share costs and risks of innovation
Open innovation has become a business imperative
Organizations are embracing their roles as co-creators, spurred by major trends including:
Labor scarcity and global mobilityFast-paced technological progressTransparency of knowledge and social networkingMarket uncertainty and fast-changing customer dynamicsThe complexity of innovation
Our research reveals critical momentum towards open innovation
Note: Economist Impact, commissioned by SUSE conducted a detailed survey of 500 senior executives to study the ongoing momentum towards open innovation.
95% of organizations have adopted open innovation
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95% of respondents practice open innovation
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54% of respondents practice open innovation on most or all projects
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41% of respondents practice open innovation on selected projects
90% of organizations have either adopted or planning to implement key open innovation practices
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Have implemented
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Planning to implement in the next three years
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No plans to implement
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Not sure/Not applicable
Established licensing or intellectual property (IP) management systems supporting open innovation projects
The open innovation barometer
Powered by unique survey data, Economist Impact developed the Open Innovation Barometer as a measure of the level of openness of innovation adopted across firms and industries.
Over 65 factors are taken into consideration in the Open Innovation Barometer, including:
Standard procedures guiding and evaluating open innovation activitiesAdoption of open-source softwareSupport from the executive team for open innovationThe extent of open innovation practised within the organizationBudget allocation and dedicated team for open innovation
The practice of open innovation is most prevalent in the retail and consumer goods industry
Retail and consumer goods65%Financial services64%Manufacturing64%Telecoms63%Automotive59%
Open innovation is most widely adopted at the development phase of production
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Idea generation
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Definition of problem
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Research
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Development
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Testing
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Commercialization
Channels of open innovation
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Open innovation partners in practice
49%Vendors and suppliers42%Universities and public research organizations53%Contracted R&D providers45%Customers and clients40%Entrepreneurs and start-ups25%Government36%Organizations in other industries44%Industry peers
Leaders on the open innovation barometer report outperformance on key business outcomes...
% of respondents that reported to be significantly ahead of industry peers across
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Advanced
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Emerging
… and report higher levels of satisfaction with key innovation outcomes
% of respondents that reported to be very satisfied
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Level of innovation within the organization
AdvancedEmerging
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Impact of innovation on business performance
AdvancedEmerging
Organizations report the biggest challenge in adopting open innovation as increased time and managerial costs
Barriers to open innovation
Increased time and managerial costs
Increased managerial and organizational complexity
Reliance on outdated or insufficient technology
Measures that improve the institutional settings for streamlining open innovation within organizations is the right move to overcome this challenge in the long run:
Adopting standard operating procedures for open innovation
Improving intellectual property management systems
See how you stack up
This tool allows users to compare their organizations' open innovation ecosystem against the sampled survey respondents on The Open Innovation Barometer.
Learn about how Netflix embraced open innovation
The success of open innovation depends on an organization's ecosystem, culture and management. Netflix is a prime example of a company that invested heavily in creating a conducive ecosystem for fully embracing open-source technology.
The open innovation barometer
Assessing the collaborative spirit of a world in flux.