06/05/2025 • by Jonas Kellermeyer
What is Open Innovation?
We want to regularly familiarize you with the most important concepts and terms that play a key role in our R&D process. Today, we will therefore be looking closer at the open innovation approach.
What is Open Innovation?
Open innovation refers to an approach in which companies expand their internal research and development (R&D) activities through the targeted involvement of external partners, customers and start-ups. With open innovation, ideas, technologies and expertise are not only developed in-house, but are also deliberately externalized and supplemented by external sources. Open innovation is based on the premise that knowledge must be shared in order to accelerate innovation: It combines internal company resources with external expert knowledge. The network logic of open innovation allows new products to be brought to market more quickly, as companies can license, purchase or jointly develop their own patents as well as external technologies.
Exemplary applications of Open Innovation
Here are five typical scenarios in which open innovation is used successfully:
1. Crowdsourcing platforms for ideas competitions
Companies such as Procter & Gamble or BMW use open innovation by launching their own crowdsourcing platforms. External innovators, students or hobby inventors can use these to network and/or submit ideas to solve specific product development challenges. The best suggestions are awarded prizes and incorporated into the company's development pipeline.
2. R&D partnerships with start-ups
Many corporations enter into joint ventures or strategic partnerships with start-ups as part of open innovation. One example is Siemens, which specifically promotes start-ups in innovation centers and integrates their technologies into its production processes in order to be able to react more quickly to market trends.
3. Technology scouting and licensing
In the open innovation approach, large companies scout patents or research work at universities worldwide and adopt these technologies via licensing. For example, a car manufacturer can license a battery patent from a university in order to make faster progress in e-mobility instead of having to conduct its own basic research.
4. Open source projects and community development
In the software industry, open innovation is often synonymous with open source. Companies such as Red Hat, IBM and SAP use open innovation by making the source code publicly accessible and integrating new features via communities. The joint contribution of external developers drives software quality and innovation speed.
5 Co-creation workshops with customers and suppliers
Open innovation can also take place internally and externally: A furniture manufacturer invites its best customers, suppliers and designers to work on new furniture concepts or sustainability strategies in open innovation workshops. This co-creation format uses external feedback directly in product design and at the same time promotes customer loyalty.
Conclusion regarding Open Innovation
Open innovation offers companies the opportunity to accelerate innovation processes by linking internally generated knowledge with external sources. With open innovation, research costs can be reduced, time-to-market shortened and competitive products developed more efficiently. Those who implement open innovation strategically benefit from a continuous exchange of ideas, reduce development risks and at the same time strengthen cooperation with external partners. Open innovation is therefore a central component of modern innovation management strategies, a forward-looking win-win strategy.
About the author
As a communications expert, Jonas is responsible for the linguistic representation of the Taikonauten, as well as for crafting all R&D-related content with an anticipated public impact. After some time in the academic research landscape, he has set out to broaden his horizons as much as his vocabulary even further.
