Why Innovation’s Future Isn’t (Just) Open

By • on May 18, 2020

The MIT Sloan Management Review noted that innovating with external partners doesn’t always give companies a competitive advantage. It needs to be balanced with internal efforts. Most companies, our research suggests, should rethink their innovation systems and develop portfolios with a balance of innovation sources. They must treat external innovation as a way of broadening their portfolios, not as a substitute for internal innovation. Although companies have been experimenting with open innovation for more than 15 years, our data reveals a notable shift in recent years. Companies have begun to seek innovation from a wide variety of potential partners, not just the ones with which they’ve already built relationships.

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