Open Innovation: A Multifaceted Perspective (In 2 Parts)

A Multifaceted Perspective(In 2 Parts)

Anne-Laure Mention, Marko Torkkeli

• Publisher: WSPC
• Year: 2016
• eBook ISBN: 9789814719193
• Topic: Business
• Subtopic: Business General
• Index: Business

Open Innovation: A Multifaceted Perspective unveils research on open innovation from multidisciplinary perspectives and with practical insights from leaders and policy-makers. The first section addresses the links between open innovation and various disciplines, methods, concepts and policy instruments. The second section reviews selectively the literature, focusing essentially on open service innovation and innovation in financial services industries. It also explores different forms and types of practices reflecting the adoption and implementation of open innovation. The third section focuses on the management of open innovation, paying specific attention to the individual, intra- and inter-organizational levels.

Contents:

• Part I:
  • Unfolding Fifty Shades of Open Innovation: Stimulating Insights & Foresights (Anne-Laure Mention and Marko Torkkeli)
  • Open Questions about Open Innovations (Leonid Chechurin)
  • Open Data For Open Science: Aspirations, Realities, Challenges and Opportunities (Vera Lipton)
  • Open Innovation or Innovation in the Open? An Exploration of the Strategy–Innovation Link in Five Scale-Intensive Services (Karl Joachim Breunig, Tor Helge Aas and Katja Maria Hydle)
  • Sustainable Innovation: Solving Wicked Problems Through Innovation (Antti Hautamäki and Kaisa Oksanen)
  • Futures of Innovation Systems and Innovation Management: Open Innovation Paradigm Analysed from Futures Perspectives (Jari Kaivo-oja and Teemu Santonen)
  • Leveraging Design Thinking to Innovate (Denis Dennehy, Frederic Adam and Fergal Carton)
  • Open Innovation Adoption Practices and Evaluation Methods in the Global Process Industry (Jarkko Pellikka, Miika Kajanus and Marko Seppänen)
  • Open Innovation Networks: Exploring Actor Roles and Network Orchestration in Living Lab (Dimitri Schuurman, Bram Lievens, Carina Veeckman, Lieven De Marez and Pieter Ballon)
  • Open Innovation and Territory (Marcin Baron)
  • Living Labs and Open Innovation in European Context (Bror Salmelin)
• Part II:
  • The Feasibility of Open Service Innovation (Tor Helge Aas and Per Egil Pedersen)
  • Financial Services and Open Innovation (Patrick Schueffel and Iustin Vadana)
  • How to Motivate and Reward Customers in an Online Co-Creation Process? (Maria Antikainen and Marketta Niemelä)
  • Customer Involvement in Innovation in Service Sector (Jaakko Paasi)
  • Can Crowdsourcing Platforms Be Used in B2B Innovation? (Hannu Kärkkäinen, Jari Jussila, Jani Multasuo and Nina Helander)
  • Crowdsourcing for Value Creation in Lean Start-Ups (Pia Erkinheimo, Hannu Kärkkäinen and Jari Jussila)
  • Open Innovation in University–Industry Collaboration: Communities of Practice (Päivi Iskanius)
  • Characteristics of Open Innovation Cultures in Different Regional Contexts (Peter Prud'homme van Reine)
  • Ambidextrous Organisational and Individual Competencies in OI: The Dawn of a New Research Agenda (Joachim Hafkesbrink and Markus Schroll)
  • Understanding Open Service Innovation and the Role of Intermediaries (Wil Janssen, Timber Haaker and Harry Bouwman)
  • Intra-Organisational Knowledge Flows: A Coopetition Perspective on Post-Acquisition and -Merger Activities (Audrey Depeige and Stavros Sindakis)
  • Management of Diversity in Open Innovation Processes (Teemu Santonen)

Readership: Graduate students, researchers, innovation managers, executives, policy makers in the field of innovation.
Open Innovation;Innovation Management;Innovation Economics;Crowdsourcing;Living Labs;Ecosystems;Skills and Competencies;Quadruple Helex Model;Communities of Practice;Strategy;Open Data;Multidisciplinary Key Features:

• Multidisciplinary and inter disciplinarity
• Theory, Practice and Policy perspectives with contributors from all these economic segments
• Diversity of themes covered

Chapter 1

UNFOLDING FIFTY SHADES OF OPEN INNOVATION: STIMULATING INSIGHTS & FORESIGHTS

Anne-Laure Mention and Marko Torkkeli

Ὁ βίος βραχ ς, ἡ δὲ τέχνη μακρὴ, ὁ δὲ καιρὸς ὀξùς, ἡ δὲ πεῖρα σφαλερὴ, ἡ δὲ κρίσις χαλεπή

(Hippocrates)

Life is short, art is long, times are fleeting, experience is perilous and decision-making is difficult.

Since the concept of Open Innovation was coined by Henry Chesbrough in 2003¹, it has increasingly gained popularity in academic research and attracted interest of practitioners and policymakers alike. A recent search (December 2014) performed in Scopus revealed a mere 5 hits in 2003, a more significant 161 hits in 2009 and over 300 hits in 2013, considering exclusively journals, conference papers, reviews and editorials listed in this internationally recognised database of peer-reviewed literature. From the business perspective, according to Google search, looking for “Open Innovation” in April 2003 returned about 200 hits, while performing the same search 10 years later provided over 450 million links.² It is obvious that Open Innovation became a paradigm which has attracted attention not only among academics, but also business entities and beyond. More and more people handing out their business cards show titles related to open innovation, like chief open innovation officer, open innovation specialist, head of open innovation to name a few. Job offerings website Monster.com search with the skill “Open Innovation” produced from tens to hundreds of job ads depending on your country of interest (conducted in March 2015). The debate about being open or not has reached new arenas and disciplines. For example, open data is booming where data owners (often public bodies) are wondering how much and under which conditions they can open-up databases and files. At the same time, the business world is eagerly looking for new opportunities to grow via open data which usually creates more jobs, desperately hunted by governments.

There has been evident development at policy level as well. The circle of Open Innovation will be closed when we add the policy perspective next to academia and practice. There is growing evidence that countries and policymakers have realised the untapped potential of Open Innovation. US President Obama supported and promoted the Open Government Initiative in 2009. The underlying idea of this act is to promote efficiency and effectiveness in government, while ensuring transparency, public participation and collaboration. Democratising publicly funded research and securing fair access to science has also been on the political agenda of the leading worldwide economy. The European Union has initiated similar actions through the launch of its initiative Open Innovation 2.0 based on a “Quadruple Helix Model where government, industry, academia and civil participants work together to co-create the future and drive structural changes far beyond the scope of what any one organisation or person could do alone” (European Commission Website). It has been considered as an important element in the European Innovation System. Several countries have their own Open Innovation initiatives going on. For example, the uncontested leading innovative economy in Europe, Finland, made their initial country-level research in 2008 about the implementation of Open Innovation in the country, focusing on how companies, universities and public sector interact and co-operate.³ Most countries are following up, with similar initiatives.

Last but not least, another element of policymaking related to Open Innovation lies in the way we educate the next generation. Several universities have courses including Open Innovation elements but at this stage, cursus focused exclusively on Open Innovation have not been specifically developed. This has been the rationale for launching a large, European-wide project, funded under the Erasmus Academic Networks, which aims at elaborating a set of curricula for university students, ranging from bachelors to PhD students, and executive MBAs. Gathering 52 partners across Europe, this project (www.oi-net.eu) intends to pave the way for the development of structured and standardised curricula across Europe.

Despite the growing research efforts focusing on Open Innovation, there is still a vibrant debate on what Open Innovation actually entails and to what extent the concept is valuable to depict economic and managerial phenomena. This decade of Open Innovation research has undoubtedly unveiled significant findings on the concept, its perimeter, its adoption and has also paved the way for a detailed and rich research agenda. The existence of this debate and research agenda also pinpoints to the fact that critical and foundational questions remain unanswered and deserve further attention.

This book series “Open innovation: Bridging theory and practice” precisely aspires to respond to this research agenda, by answering to some foundational and fundamental questions that currently remain unaddressed. The series aims to contribute to knowledge creation and more importantly, to knowledge accumulation, through the combination of multiple streams, perspectives, disciplinary approaches and diverse backgrounds. In doing so, it departs from the current body of literature adopting a purely academic perspective on Open Innovation, and thus restates the importance of anchoring Open Innovation research into the reality, practices, challenges facing firms and policymakers. Its added value lies in the fact that it gives room not only to academics but also to innovation professionals to describe their Open Innovation journey, reflecting on their challenges and experiences in such a way that they provide meaningful insights to other practitioners, thought leaders and policymakers.

This book series gathers selected contributions from academics, thought leaders and policymakers active in the field of Open Innovation, across industries, sectors and countries. Its main originality stems from the fact that it astutely bundles theoretical insights with managerial practice, so as to provide topical insights to a wide readership, encompassing academics, researchers, innovation leaders, and policymakers with a shared interest in innovation. The attention granted simultaneously to managerial practice and policy-making is, in the view of the editors, an essential feature of this series, as it enables grasping industrial and sectoral peculiarities, diverse institutional contexts, and practical experiences in view of offering fresh, topical yet sustainable, multidisciplinary and multipolar perspectives on Open Innovation. This approach also aims at making sense out of a concept that, they believe, represents much more than a management fad by enrolling the wider community involved in the implementation of Open Innovation and benefitting from their insights. In other words, this series aims at having an impact where it matters the most: In firms and organisations, where the economic reality is happening.

This series covers multiple perspectives, such as measuring and assessing the impact of Open Innovation, dealing with organisational matters and culture, designing strategies, policies, incentives and measures to support and implement Open Innovation, and discussing the advantages and limitations of adopting Open Innovation strategies. Across the different books, it will deal with Open Innovation at individual and team levels, exploring the human side of Open innovation; at firm level, addressing the endless managerial challenges faced by organisations; at ecosystems level and finally at macroeconomic level, focusing on policy elaboration and impact analysis. A consistent feature of the book series resides in its willingness to provide topical insights on real cases of Open Innovation adoption in firms, while simultaneously contributing to, and hosting the ongoing debate on this paradigm shift.

The first two books of this series will exemplify our conviction that Open Innovation needs to be debated in different arena, from multidisciplinary perspectives and most importantly, with practical insights from thought leaders and policymakers. The contributions revolve around three main themes. First, we will address the links between Open Innovation and various disciplines (such as strategy, economics), methods (such as design thinking and futures), concepts (sustainable and symbiotic innovation) and policy instruments (living labs). This first part will also challenge the necessity of introducing the concept of “Open Innovation”, as perceived in a provocative contribution by a thought leader in a large multinational company. Second, we will review selectively the literature, focusing essentially on open service innovation and on innovation in financial services industries. We will then explore different forms and types of practices reflecting the adoption and implementation of Open Innovation. Namely, we will explore co-creation processes, customer involvement, crowdsourcing, communities of practices, using different research methods (ethnographic, case study research and interviews) and combining views from academics and practitioners. Third, we will move towards the management of Open Innovation, paying specific attention to the individual, intra- and inter-organisational levels, as well networks as units of analysis. Managing culture and diversity will also be debated in this section, and will be illustrated using a European-wide case.

Part 1: Open Innovation: Adopting a Multipolar Approach

Proudly stealing part of the famous quote from Hippocrates, we adopted “Art is long, and life is short” as our motto. This has been our motivation for launching this book series and for selecting a practitioner-oriented contribution, which explicitly and directly challenges the necessity of introducing the concept of Open Innovation, as well as the challenges related to its implementation in companies. This choice resonates with our wish to trigger the disturbing questions and to raise the practical concerns that are left unsolved in the heads of managers and policymakers alike. Our aim is to host this debate, by collectively involving and engaging a wide variety of actors. Specific attention has been paid to striking the right balance between academic contribution, with theoretical relevance, and the pragmatic insights that firms and policymakers still desperately need. A significant part of the chapters also astutely combines theoretical and practical views, and has been the outcome of cooperation between academics and practitioners.

In Chapter 2, “Open questions about Open Innovations”, Leonid Chechurin, an academic turned practitioner who just went back to academia, raises the question of the relevance and usefulness of the concept of Open Innovation. Based on his experience as a practitioner for a leading industrial, with a strong R&D orientation, multinational company, Chechurin challenges the realistic nature of openness in the innovation process. Referring to some practical experience, the author argues that Open Innovation still has to evidence its suitability in practice, its novelty and its fruitfullness. He also emphasises some of the key individual and organisational challenges related to the adoption of Open Innovation strategies, such as corporate culture and intellectual property rights management.

Chapter 3 by Vera Lipton, “Open Data for Open Science: Aspirations, Realities, Challenges and Opportunities”, opens the debate to all scientific fields. By advocating for open data and free flows in the scientific community, she embraces some of the key questions of this century: How to create new knowledge while not reinventing the wheel? How to benefit from existing knowledge to further expand the boundaries of our understanding of the world, to create radical novelties? How to build repositories of knowledge, and to make them publicly available? Vera Lipton recollects the history of open scientific data, since the emergence of the phenomenon. The Scholar builds the case for openness in science, arguing on the need to share scientific knowledge as widely and as freely as possible. As she puts it, “if science is to deliver its full value to society, it must be easily and freely accessible”. Furthermore, she claims that open science is a key to increase the dissemination of research findings, to augment its impact on society, to reduce the duplication of research effort and finally, to enhance the quality of the scientific outcomes and methods thanks to quicker and faster feedback. She further provides an in-depth review of current initiatives in terms of open scientific data as well as the positioning of selected countries with respect to the open access policy. Her analysis follows with the evolution of publishing practices, and then conducts an in-depth exploration of the case of the CERN regarding its open data practices. She concludes with managerial and policy recommendations, which would ultimately increase the volume of re-usable scientific data publicly accessible.

Our journey continues with an academic contribution which concentrates on the linkages between strategy and innovation. But what is strategy without innovation? “Innovate or die” has been a prevailing mantra in businesses, but it seems more topical and relevant than ever in these turbulent times. Karl Joachim Breunig, Tor Helge Aas and Katja Maria Hydle examine the complex relationship between strategy and innovation in the context of open service innovations. Based on a multiple case analysis, embracing five large scale-intensive service firms belonging to several service industries, their results highlight the absence of explicit innovation strategies in all firms and suggest that the logic of innovation and strategy is hard to integrate in practice for these firms. Their empirical exploration contradicts the extant yet ambiguous literature on the links between strategy and innovation, and provides stimulating insights for managerial practice.

Sustainability now lies at the cornerstone of most strategies and policies, and analysing innovation through this prism brings insightful findings. Antti Hautamäki and Kaisa Oksanen introduce the concept of sustainable innovation, defined simultaneously by an impact orientation, a systemic and inclusive approach and a need to tap into undiscovered innovation potential and new sources of knowledge. They contend that the challenges facing the world nowadays call for a shift in the way innovation is defined, implemented and managed in firms and at policy level. Through a literature review, as well as an exploration of several examples, they build the case for sustainable innovation, which aims at balancing the long term influence of the process and the output with the needs of people and societies, as well as economic and environmental concerns.

After exploring what and how sustainability can make innovation thrive, we move forward to another strategic approach of Open Innovation, adopting a foresight or more precisely, a futures-oriented perspective to shed light on its relevance, and complementarity with the closed innovation model. In their academic chapter, Jari Kaivo-oja and Teemu Santonen explore the Open Innovation paradigm through the lenses of futures-oriented approaches of innovation management. Applying this perspective confirms that Open Innovation and Closed Innovation models are complementary and not substitutes for large firms, which apply both in a balanced and strategic way to augment their research and innovation capabilities. They introduce the concept of “symbiotic innovation management model” which falls somewhere between fully open and fully closed innovation models, thus striking the right balance, according to the needs, culture, and development goals of the firms. The scholars further unveil that global networking is a key driver for Open Innovation activities, thus suggesting that appropriate mechanisms, incentives and routines should be implemented so as to thrive the Open Innovation adoption. They also stress the role of technological change, and their overall turbulence levels, to drive the adoption of Open Innovation practices. Finally, they conclude that radical innovation represent the key success factor of growth in companies and suggest to open the debate on the integration of theories of radical innovation to the newly developed Open Innovation paradigm.

We temporarily close the conceptual debate, and will reopen it in every book of this series, to move forward to more tactical levels, thus introducing tools, methods, techniques which may cleverly be integrated into an Open Innovation approach. Design Thinking and Business Process Management will be the focus of those tactical contributions, bringing about more clarity for innovation leaders, as well as some concrete and pragmatic toolkit, and experience feedback on those.

Denis Dennehy, Frederic Adam and Fergal Carton debate about the relevance of design thinking as a new approach to solve complex problems and challenges in businesses, when conducting activities aimed at the development of novelties or when elaborating new strategies. Their contribution depicts how design thinking has been applied for a wide range of industries in two small and open economies, and elaborates on the benefits perceived by practitioners, when confronted with design thinking approach and visualisation tools such as the Partnership Management Canvas^®.

Jarkko Pellikka, Miika Kajanus and Marko Seppänen examine the inter-organisational collaboration as an essential practice of Open Innovation adoption in the global process industry. The scholars define, test and implement a standardised process, based on Business Process Management and Lean Six Sigma approaches, as well as evaluation methods and tools that engage several collaborators to improve key business process performance of their firms. Their findings demonstrate that adopting a standardised process can lead to several concrete business results for the management, as well as can foster the adoption of Open Innovation. Finally, their multiple case analysis illustrates that engaging internal stakeholders acts as a catalyst for the utilisation of the firm’s tacit knowledge to further improve business performance. Interestingly, their multiple case study tackles several levels of analysis and provides stimulating insights on how fostering inter-organisational knowledge sharing among the collaborators facilitates the creation of a variety of novelties at the firm, regional and cluster levels.

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Table of contents

• Cover
• Title
• Copyright
• Foreword
• About the Editors
• List of Contributors
• Contents
• Chapter 1 Unfolding Fifty Shades of Open Innovation: Stimulating Insights & Foresights
• Chapter 2 Open Questions about Open Innovations
• Chapter 3 Open Data For Open Science: Aspirations, Realities, Challenges and Opportunities
• Chapter 4 Open Innovation or Innovation in the Open? An Exploration of the Strategy–Innovation Link in Five Scale-Intensive Services
• Chapter 5 Sustainable Innovation: Solving Wicked Problems Through Innovation
• Chapter 6 Futures of Innovation Systems and Innovation Management: Open Innovation Paradigm Analysed from Futures Perspectives
• Chapter 7 Leveraging Design Thinking to Innovate
• Chapter 8 Open Innovation Adoption Practices and Evaluation Methods in the Global Process Industry
• Chapter 9 Open Innovation Networks: Exploring Actor Roles and Network Orchestration in Living Lab
• Chapter 10 Open Innovation and Territory
• Chapter 11 Living Labs and Open Innovation in European Context
• Index
• Cover 2
• Title 2
• Copyright 2
• About the Editors 2
• List of Contributors 2
• Contents 2
• Chapter 12 The Feasibility of Open Service Innovation
• Chapter 13 Financial Services and Open Innovation
• Chapter 14 How to Motivate and Reward Customers in an Online Co-Creation Process?
• Chapter 15 Customer Involvement in Innovation in Service Sector
• Chapter 16 Can Crowdsourcing Platforms Be Used in B2B Innovation?
• Chapter 17 Crowdsourcing for Value Creation in Lean Start-Ups
• Chapter 18 Open Innovation in University–Industry Collaboration: Communities of Practice
• Chapter 19 Characteristics of Open Innovation Cultures in Different Regional Contexts
• Chapter 20 Ambidextrous Organisational and Individual Competencies in OI: The Dawn of a New Research Agenda
• Chapter 21 Understanding Open Service Innovation and the Role of Intermediaries
• Chapter 22 Intra-Organisational Knowledge Flows: A Coopetition Perspective on Post-Acquisition and -Merger Activities
• Chapter 23 Management of Diversity in Open Innovation Processes
• Index