Despite recognizing the value of an open approach, there are some problems when it comes to making investment decisions relating to open innovation projects. The survey also found that approaches to open innovation – which it defines as how a company works with partners, agencies and other companies outside its organization to foster innovation, vary according to business context and maturity.
Most companies agree that open innovation is important, but relatively few have so far adopted a structured or company-wide approach to it. Several respondents felt that it can be difficult to gain buy-in and resources for open innovation projects and those involved in open innovation can feel marginalised and under pressure to show results.
R&D Directors say that to be successful open innovation requires leadership, both from the top of the business and all the way through the heads of function. With relevant, respected members of the company seen to be championing it, the process is much easier.
Leadership is also critical to building the outward-looking culture that is essential. An engaged, enthusiastic CEO or head of function can do much to engender a similar attitude in employees, and get open innovation accepted.
Most respondent said open innovation is a strategic necessity in sustaining innovation leadership. Some also saw it as a possible cost-saving response to the present downturn, and all agreed that making the right decision on which open innovation initiatives to pursue was magnified in the current economic climate.
As yet, few companies are able either to construct and appraise an objective business case for open innovation, or to implement a reliable way of measuring the value it brings to the business.
“I understand the need for open innovation in principle. It’s not always clear, however, how working in this way will generate real value for our company,” said the Director of drug delivery at one medical device company.
Open innovation requires skills such as relationship building, negotiating and the ability to pioneer novel legal arrangements. Despite this, training in open innovation is not prevalent. Some respondents believe the only way to learn about open innovation is on the job, while others suggest that formal training is an important part of its acceptance and its success.
“We put one person in position to lead the effort, but if you want to make it work, you need an entire team of people who all understand different aspects of open innovation across the entire company,” said the Head of R&D at a pharmaceutical company.
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