Advantages of open innovation

Henry Chesbrough, adjunct professor at the University of California Berkeley Haas School of Business, coined the term “open innovation” over a decade ago. This is the practice of sourcing ideas outside your own organization as well as sharing your own research with others. However, he says that despite a booming economy in Silicon Valley, companies aren’t executing on open innovation as well as they should. They are outsourcing, but not collaborating, and fewer value-added new products and services are being created as a result.