How Open Innovation Helps
www.hbr.org
SPOTLIGHT ON INNOVATION These strategic moves can reduce the costs of R&D today without sacrificing tomorrow’s growth.
How Open Innovation Can Help You Cope in Lean Times by Henry W. Chesbrough and Andrew R. Garman
•
Included with this full-text Harvard Business Review article: 1 Article Summary The Idea in Brief—the core idea 2 How Open Innovation Can Help You Cope in Lean Times
Reprint R0912F
SPOTLIGHT ON INNOVATION
How Open Innovation Can Help You Cope in Lean Times
The Idea in Brief
• During tough economic times, placing certain assets and projects outside your company’s walls can actually preserve opportunities for future growth while you take the time to shore up the fortress. • Some inside-out strategies involve opening up projects to investment and development by existing outside firms; others call for spinning off projects as separate ventures that still allow you to retain some equity. • The inherent cultural, political, and organizational challenges of inside-out open innovation can be met by approaching it holistically and placing it under the leadership of senior executives in strategic roles.
COPYRIGHT © 2009 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED.
page 1
These strategic moves can reduce the costs of R&D today without sacrificing tomorrow’s growth.
SPOTLIGHT ON INNOVATION
How Open Innovation Can Help You Cope in Lean Times by Henry W. Chesbrough and Andrew R. Garman
COPYRIGHT © 2009 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED.
History shows that the companies that continue to invest in their innovative capabilities during tough economic times are those that fare best when growth returns. That’s how the U.S. chemicals industry overtook Britain’s after World War I, how Sears surpassed Montgomery Ward as the leading U.S. retailer after World War II, and how Japanese semiconductor makers outpaced U.S. companies after the downturn of the early
SPOTLIGHT ON INNOVATION These strategic moves can reduce the costs of R&D today without sacrificing tomorrow’s growth.
How Open Innovation Can Help You Cope in Lean Times by Henry W. Chesbrough and Andrew R. Garman
•
Included with this full-text Harvard Business Review article: 1 Article Summary The Idea in Brief—the core idea 2 How Open Innovation Can Help You Cope in Lean Times
Reprint R0912F
SPOTLIGHT ON INNOVATION
How Open Innovation Can Help You Cope in Lean Times
The Idea in Brief
• During tough economic times, placing certain assets and projects outside your company’s walls can actually preserve opportunities for future growth while you take the time to shore up the fortress. • Some inside-out strategies involve opening up projects to investment and development by existing outside firms; others call for spinning off projects as separate ventures that still allow you to retain some equity. • The inherent cultural, political, and organizational challenges of inside-out open innovation can be met by approaching it holistically and placing it under the leadership of senior executives in strategic roles.
COPYRIGHT © 2009 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED.
page 1
These strategic moves can reduce the costs of R&D today without sacrificing tomorrow’s growth.
SPOTLIGHT ON INNOVATION
How Open Innovation Can Help You Cope in Lean Times by Henry W. Chesbrough and Andrew R. Garman
COPYRIGHT © 2009 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED.
History shows that the companies that continue to invest in their innovative capabilities during tough economic times are those that fare best when growth returns. That’s how the U.S. chemicals industry overtook Britain’s after World War I, how Sears surpassed Montgomery Ward as the leading U.S. retailer after World War II, and how Japanese semiconductor makers outpaced U.S. companies after the downturn of the early