And I promise you the scientists in the labs doing these photon lasers, they were not thinking about music and video, was the application of their work. HENRY CHESBROUGH: To start I’ll give you a somewhat extreme example of what’s not happening. And instead of P&G continuing to grow from its mastery of open innovation, they seemed to lose the formula. 24 min. ALISON BEARD: Yeah. They provide a lot of employment, but the export hardly any of their vehicles outside of China. And we looked in this chapter at the tension between those two forces. Heineken’s open innovation development process holds true to their statement that “great ideas and innovative solutions can come from anywhere.” 7 In its 60+ Design Competition, Heineken invited collaborators to reimagine the drinking experience for the 60+ consumer. And then when we get to automotive, it’s really almost a B to C market. To give the latter food for thought, we assembled publicly available EU and UK data to approximate the likelihood that adopters of open innovation could, at some point, clash with proprietary firms in a given industry unless they took precautions (exhibit). When you’re selling high speed rail, that’s really a government to government sale. This case study focuses on how Huawei had developed and used Huawei Innovation Research Program (HIRP) as its open innovation platform, showing how the … By partnering with other organizations who’ve already done some amount of work that they’re sharing with you, you can start in the middle rather than starting at the beginning. Rather, I think the infrastructure investments help to enable private investment and private entrepreneurship. Some of the fastest growing and most profitable businesses are using open-market innovation to improve the pace, cost, and quality of innovation. The Internet had opened up access to talent markets throughout the world. If you'd like to share this PDF, you can purchase copyright permissions by increasing the quantity. He's the author of the book "Open Innovation Results: Going Beyond the Hype and Getting Down to Business". And China now has by unit volume, the largest automotive market anywhere in the world. And one example of this is Intel which does a lot of semi-conductor research with our engineering faculty here at Berkeley. So, I think it would be a very smart policy for the government to create mechanisms to promote 5G everywhere. It used open-market innovation. California Management Review. HENRY CHESBROUGH: Thank you for having me. HENRY CHESBROUGH: Some of it is to realize that you don’t get all this open innovation for free. Many companies used OI to give themselves and edge. Now that won’t be true at the beginning. A report from HBR Analytic Services What we learned . However, he says that desp… He’s a professor at the Haas School of Business at the University of California, Berkeley and author of the book, “Open Innovation Results: Going Beyond the Hype and Getting Down to Business.”. By HBS Digital Initiaitve. HENRY CHESBROUGH: Yes. Then we looked at semiconductor and automotive. ALISON BEARD: So, open innovation may still be working, for example, among all of the Silicon Valley companies, or in Tele Aviv, but not that’s not filtering outside of particular industries to a broad base of employees, customers, et cetera. And I think something like this would be very helpful here. To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study. ALISON BEARD: Right. How do companies that don’t have that wealth start to get involved in this process too? But no one company captures all those benefits. So far so good. These issues bring us back to traditional business strategy, which can offer important insights. I want to go back to the basics a little bit with open innovation because you talk about the fact that there are so many companies practicing at, but a lot of them are very focused on the outside in bit, you know, surveying the landscape, working with universities, finding startups, but they’re not making good on the inside out aspect. So, for things like new materials and material science, or new kinds of semiconductor designs, these things may take longer than that 10 year funding life will allow. Our guest today wants to explain why and what we can do about it. HENRY CHESBROUGH: So, one problem you already alluded to, a lot of great research is being done in our universities. The first perspective considers markets for intellectual property, in which companies trade patents and other assets in a bilateral fashion. A program with the government, whether it’s through a subsidy, or a tax credit, or sharing technology, to get everybody access to something like that. Dr. Henry Chesbrough is a co-founder of the Open Innovation Community and created the theory and coined the term "open Innovation." I think when the financial crisis hit in 2007, 2008, open innovation was a very new idea and people were still figuring it out. Step 2 - Reading the Open Innovation at Fujitsu (A) HBR Case Study . To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study. So, where do you find the right balance? ment innovation: open source development. HENRY CHESBROUGH: So your right to point out that my point about innovation infrastructure is indeed saying that we, there is a role for government investment to enable not only the generation of technology, but also the dissemination and the absorption. These days, because of LinkedIn, because of improvements in hiring practices and targeting for new recruits, a lot of companies are looking to hire people who have essentially already done the job before. Harvard Business Review, December 2009. pp. Successful innovation requires the ability to generate smart ideas AND commercialize them for success. And if people were using the patents and practicing them, I wouldn’t be unhappy at all. So, it’s a wonderful study in a very human response to what seems like a great outcome that still had these unanticipated consequences. And they’re saying wait a minute. When we moved to semiconductors though, the pictures quite different. So, you see visual evidence of this in daily life just wandering the streets of San Francisco. Their heavy reliance on a closed, traditional model of product development might stifle true innovation and may cause biopharma companies to lag behind their more creative peers. Taking the things that they’ve worked on and sharing them with the rest of the world. We’re still in the middle of the journey. And here at Berkeley, we have a very good technology transfer office, but they don’t have anywhere near enough funding to research and protect all the invention disclosures that come to them from the scientists, engineers and academics that we have here. HBR's 10 Must Reads paperback series is the definitive collection of books for new and experienced leaders alike. Show HBR IdeaCast, Ep How to Capture All the Advantages of Open Innovation - Jan 28, 2020 Henry Chesbrough, adjunct professor at the University of California Berkeley Haas School of Business, coined the term "open innovation" over a decade ago. Leaders looking for the inspiration that big ideas provide, both to accelerate their own growth and that of their companies, should look no further. / How to Capture All the Advantages of Open Innovation. HBR's 10 Must Reads on Innovation book. ALISON BEARD: So that’s a whole new function that companies with R&D budgets need to build? Well he retired in 2008 and then the company went into a period, we hit the financial crisis. Show HBR IdeaCast, Ep How to Capture All the Advantages of Open Innovation - Jan 28, 2020 Henry Chesbrough, adjunct professor at the University of California Berkeley Haas School of Business, coined the term "open innovation" over a decade ago. So, if technology is accelerating and advancing we would expect abundance and improvement on those measures and we’re not seeing it. 68-76. So, what argument would you make to them for forging ahead? A business to consumer market where the market now is millions and millions of people making individual purchase decisions for cars. HBR's 10 Must Reads on Innovation book. and pay only $8.00 each. But as a society we may say, it’s actually good for everybody to have everyone have access to high speed internet. So if it’s an app for your Smart phone, no problem. 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