Strategic application of outbound open innovation

Abstract

Purpose -This paper aims to examine the strategic dimension of outbound open innovation (OOI) with a focus on identifying strategic objectives for exploiting knowledge externally. It reviews the literature, presents a list of strategic objectives, and introduces a novel categorization. Design/methodology/approach -A literature review of works combining strategy, and OOI lead to conceptualizing an array of strategic benefits including novel concepts. The review focuses on the empirical observations reported by previous research. Findings -This paper presents the most comprehensive description of strategic objectives that may be pursued by OOI, with several case examples. Objectives are classified to six categories: gaining access to new knowledge, multiplication of own technologies, learning from knowledge transfer, controlling technological trajectories, external exploitation as a core business model and exerting control over the market environment.Research limitations/implications -The paper limits itself to discussing the non-monetary objectives and incentives for engaging in outbound OI, or in other words, the potential that outbound OI has in creating strategic business opportunities. Practical implications -For the manager, acknowledging the external opportunities for a firm's knowledge assets allows shifting from "just profit" externalization to a more strategic control over the company's future and its environment. Originality/value -Whereas the common viewpoint in connecting between strategy and OOI is to minimize the negative impact, while retaining monetary benefits, this paper views OOI as an enabler of further strategic mobility and flexibility. The categorized list of strategic objectives also includes some novel additions to current understanding.

The landscape of open innovation in Brazil: An analysis of the recent literature

“…The transfer of ideas and technologies to other organizations is the outbound OI process (Spithoven et al, 2010). Outbound can be realized, for example, through patent selling, technology licensing, and the creation of spin-offs (Chesbrough, 2006;Kutvonen, 2011). It is important to note that some studies in OI (e.g., Gassmann & Enkel, 2004;Sikimic et al, 2016) recommend the use of the coupled process, with integrated outbound and inbound efforts (Gassmann & Enkel, 2004;Sikimic et al, 2016).…”

Cross-cultural strategic intelligence solutions for leveraging open innovation opportunities

“…Two practitioners in this field distinguish between three knowledge processes (knowledge exploration, retention, and exploitation) that can be performed either internally or externally (Lichtenthaler, 2009). The main objectives pursued by open innovation strategies are the following: gaining access to new knowledge, multiplication of own technologies, learning from knowledge transfer, controlling technological trajectories, external exploitation as a core business model and exerting control over the market environment (Kutvonen, 2011).…”

Ambidextrous Organizational and Individual Competencies in Open Innovation: The Dawn of a new Research Agenda

“…Ability for Inside-Out Collaboration: Inside-out collaboration is about a company utilizing its knowledge externally, that is not used for its own market-based purposes (cf. Kutvonen, 2009;Kutvonen and Torkkeli, 2008;Hafkesbrink and Schroll, 2010a;Escher 2005;Gassmann and Enkel, 2004;Lichtenthaler, 2007), and establishing communication and working relationships with corresponding market partners. This kind of 'downstream or outbound utilization' is usually production and marketingoriented and addressed to as the 'exploitation of explicit knowledge' (cf.…”