The Challenges of Open Innovation
Two factors take up the function explaining the phenomenon of open innovation
1. The ability of the industrial complex to satisfy the demand for certain goods
Demand and incumbent companies’ ability to produce change at different speeds exist in ill balanced environments.
There is a pocket of opportunity for open innovation — though it is temporary and gets constrained by financial, technical, or organizational issues – whenever the demand grows big enough and the incumbents are constrained to deliver. The attempt to find solutions from outside the narrow industrial cluster, where these constraints have not prohibited progress, is open innovation.
2. Demand and production capabilities must be included
The metric of likelihood for open innovation competing with proprietary IP while most experts in the field speak only of the parameters that describe the ability to produce.
Far from being able to precisely specify a utility and the actual volume of which that utility will be consumed with technological complexity, creation of capital, the number of investors, and the number of companies.
New market entrants and outsiders have very little room for creating creative outbursts, when its outrageous to suggest the opening and openly innovating model for companies that are close with industry leaders and consider situations where companies are pushed out of the market.