Innovating through Open Innovation

Abstract

Innovation is the key term for growth and development among organizations. In the last century, the innovation paradigm was characterized by firms investing in huge R&D division, working secretly from the enviroment. Knowledge (Intellectual property), especially, was created and sold in-house and having the smarter people in the field developing new ideas and products, making the whole organization more competitive. However, during the last decades of the century, things slowly has been changed as new and smaller competitors overcome, with more innovative and new perspectives, the bigger and well settled corporations. The knowledge landscape has changed and with it the rules of competition. The paradigm of Open Innovation is becoming the standard innovation process, and has been already adopted by many firms, organizations and industries. But what is, nowadays, Open Onnovation? How to deal with it in a globalized market? Why some companies use it? The aim of the master thesis is focused on Open Innovation Paradigm which should be seen as the outflows and inflows of ideas to create value in an established business. Moreover try to figure out the limits and the benefits and why organizations use this model compared to the previous one: Closed Innovation.