Question

what are the benefits to the open innovation model? what are drawbacks of the open innovation model? What other forms can innovation take in companies?

Answer 1

ANS

The open innovation model is the model in which innovation is welcomed from the outside in the form of outsider ideas and also the unfinished technology is send outside on how to complete it. The way the open innovation model works helps to bring new ideas and innovative technology for the firms.The benefits of open innovation models are that it motivates the technology and ideas into the firm or organization and due to this the investment in the research and development sector has a greater scope, it has the ideas from the public which makes it easier for the firm to enter in the market , the organization also gets a lot to learn when it is dealing with open innovation models , the ideas in the open innovation model has a greater foundation then primary ideas of inside the organization.

The open innovtion model has its disadvantages too as it increases the processing cost as the idea is from outsider which may not be according to structure of the firm and so can increase the processing cost. The cost of acquiring the idea can also lead to increase in expenses of the organisation. As discussed before that idea is not according to the structure so it can increase the barriers in the day to day work , also when the organisation has dependency over open innovation then the own innovation work of research and development sector falls down rapidly. The other form in which the iinnovation can take place is when the ideas and innovation is given by internal research and development section of the organisation.