Question

While innovation was traditionally located in the R%D Department, in the 21st century this situation has changed? Why? What is "open innovation" and what does this paradigm assume?

Answer 1

The situation has changed in the 21^st century and innovation is no longer located in the R&D department of an organization due to the fact that the thought process associated with innovation has seen a radical shift. In the past the place of innovation was primarily within the organization. In the present age this notion changed around its head and now the place of innovation is both inside and outside the company. For instance companies like 3M which are known for their innovation prowess actively encourage its employees in all areas and department (and not just R&D department) to spend a portion of their time to innovate. Innovation is not just about R&D but involves three main capabilities i.e. discovery, incubation and acceleration. These three capabilities are present throughout the organization and not just in its R&D division and this realization has changed the situation with regards to innovation in the 21^st century.

The paradigm of open innovation assumes that the place of innovation is both inside and outside the company. Innovation occurs through interaction of both internal ideas as well as external ideas. Technologies and processes are highly dynamic forces and hence the interaction of internal and external forces related to technology is a fact associated with present day organizations. Thus innovation cannot be limited to employees but can also occur and be supported by external stakeholders like vendors, suppliers, etc. Thus the paradigm of open innovation assumes collaborative networking.