NetworkIndustriesandOpen InnovationDr.MScBertSadowskiTechnischeUniversiteitTUeEindhovenUniversity of TechnologyWhere innovation starts
Network Industries and Open Innovation Dr. MSc Bert Sadowski
StructureOpeninnovation:theoriginsandtheconcept.Openfirmstrategiesmeanopenmarkets?TheNetNeutralityDebate:TheOpenInnovationAngleSummaryTechnischeUniversiteitTUEindhoveneUniversityofTechnology10/13/2013PAGE1EcononomicsofInnovation2013
Structure • Open innovation: the origins and the concept • Open firm strategies mean open markets? • The Net Neutrality Debate: The Open Innovation Angle • Summary Econonomics of Innovation 2013 10/13/2013 PAGE 1
Openinnovation:Origins oftheconcept,contextand newdevelopmentsTechnischeUniversiteitTUeEindhovenUniversityofTechnology10/13/2013PAGE2EcononomicsofInnovation2013
Open innovation: Origins of the concept, context and new developments Econonomics of Innovation 2013 10/13/2013 PAGE 2
The Traditional Concept of (Closed)InnovationAssumption:FirmrequirescontrolResearchDevelopnerntoverinnovation(wholeinnovationFimmtchain)boundanesOABased onthelinearmodel ofOinnovationReseardh pojectsO+Madets0R&Distightlycoupledandinternallyfocused00BoundariesofthefirmcharacterizelimitsofthefirminwhichideasflowSouroe:Chesbxught2003fromtheleftandflow outtothemarket to the rightBut:Firm boundaries limit exchangeof(abundant)knowledgefromSource:Chesbrough,2003outsideTechnische UniversiteitTUEindhovenUniversityofTechnologyPAGE3EcononomicsofInnovation201310/13/2013
The Traditional Concept of (Closed) Innovation • Assumption: Firm requires control over innovation (whole innovation chain) • Based on the linear model of innovation • R&D is tightly coupled and internally focused • Boundaries of the firm characterize limits of the firm in which ideas flow from the left and flow out to the market to the right • But: Firm boundaries limit exchange of (abundant) knowledge from outside Econonomics of Innovation 2013 10/13/2013 PAGE 3 Source: Chesbrough, 2003
Origins closed innovation paradigmHistory:Governmentsanduniversitiesnotinvolvedincommercialization of scienceClosed innovation>commonpracticeof companiesbeforethesecond worldwar(secrecy,nointegrationofR&DinformationbeyondownR&Dlab)No linkswithoutside scientific communitiesand notimetowaitfor theapplication ofoutsideideasfromcompaniesConsequence:vertical integration as most efficient formTechnischeUniversiteitTUEindhovenUniversityofTechnologyPAGE410/13/2013EcononomicsofInnovation2013
Origins closed innovation paradigm • History: • Governments and universities not involved in commercialization of science • Closed innovation > common practice of companies before the second world war (secrecy, no integration of R&D information beyond own R&D lab) • No links with outside scientific communities and no time to wait for the application of outside ideas from companies Econonomics of Innovation 2013 10/13/2013 PAGE 4 Consequence: vertical integration as most efficient form