Open Innovation Theory Essay Example | Topics and Well Written Essays - 1500 words

Open Innovation Theory - Essay Example The purpose of this paper is to illustrate and analyze new practices by drawing attention to practices on capitalization of a company’s innovation knowledge and potential through participation of resources and external factors (Chesbrough, 2009). OpEx is a project that reinforces and constructs the need of opening an external innovation process to give way to innovation. From a wider perspective, it has been argued that paradigm shift takes place based on how companies commercialize and conceptualize inventions and knowledge leading to firms becoming permeable. On a business perspective, there is inconclusive evidence in defining and understanding open innovation but on this particular subject, the focus on open innovation on a business perspective is more engaging and extensive. There are a number of frameworks on open innovation which can be used to examine the implications and application of open innovation in companies as well as creating various relationships between stud ents and industry. These include crowd sourcing, absorptive capacity, innovation communities, outside-in and inside out process. The approach for identifying open innovation practices is by cases identified in the literature that offers suggestions on how firms can deploy and conceptualize open innovation. Examples of strategies implemented are; Unilever, Volvo and Procter & Gamble to name but a few (Dodgson, 2008). This report focuses more on giving an explanation to issues that surround the establishment of academia industry relationship and tools that can be used in fostering such relations for the open innovation. Factors that affect collaborations between academia and industry are presented and numerous strategies to strengthen the open innovation realization are also elaborated. The internet has become a significant driver on introducing forms of community participation to create and disseminate innovation. (Dahlander, 2008). Disclosing academia industry collaboration through open innovation on the internet has become a viable and an interesting approach to enact open innovation. Introduction This paper consists of a particular focus on the establishment and maintenance of academia industry relations as a way of creating and sharing innovations and ideas. It focuses its attention on exemplar practices to capitalize the knowledge of innovation and its potential leading to external factor’s seamless integration. Interactions rather than occurring in a physical world, it takes place through the internet and is mediated by richly mediated interfaces. The open innovation platforms through integration could enhance access to entrepreneurs, academics, consultants and researchers. Incorporation of particular mechanisms and principles can be recommended into practices of open innovation by allowing interactive and media rich collaborations between academia and industries. According to Chesbrough, â€Å"Open innovation is the use of purposive inflows and o utflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively. Open innovation is a paradigm that assumes that firms can and should use external ideas, as well as internal ideas, and external and internal paths to market, as they look to advance to technology† (Chesbrough, 2012: p. vii). This means that organizations should use external technologies and ideas in their businesses while on the hand allowing other companies to use the unused ideas. Open innovation frameworks Numerous open innovation frameworks are used to design and implement open innovation. Moreover, these frameworks can also be used to examine the implications and application of open innovation in companies but also create certain types of academia-industry relations