How firms partner with peers through open innovation

In his book “Open Innovation: The New Imperative for Creating and Profiting from Technology”, Henry Chesbrough coined the term ‘‘open innovation,’’ where companies have shifted from closed innovation processes towards a more transparent way of innovating.

Companies that have gone for open innovation paradigm shift have done so on the realization that it’s possible to tap into the knowledge and expertise of excellent individuals outside your company, it is not necessary that you have to originate the research in order to profit from it, make best use of external ideas to add more customer value.