Open innovation as a strategy for service organizations

Abstract

Open Innovation, the concept formalized by Professor Henry Chesbrough at UC Berkeley in his book, ‘Open Innovation’. He states that in the knowledge economy, where Wikipedia is used more than Encyclopaedia Britannica, it is time to call on external sources to drive innovation while also making a contribution in return. Tapping into knowledge that sits outside of the enterprise and having an internal innovation strategy is not only important, but increasingly prevalent in the marketplace. Most of the approaches to open innovation discussed and emerged out are based on product and manufacturing point of views. The rise of services industries as major component of baskets in the global GDP means, open innovation to services must be discussed and designed to create competitive advantage to service companies and make them successful and sustainable. In this study, *The reasons behind the transition from a closed to an open innovation model and their strategic differences are documented *The different models that are widely prevalent in industry practices with relevant examples taken from secondary research for each one of them are discussed * The role of service workers in the innovation process and the managing the innovation process in discussed in detail * Obstacles to value creation in open innovation services business models are analyzed in detail and we have proposed a framework for businesses to decide their business model of IPR and IP practices.