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1.3.1. The two types of open innovation

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We classically identify two main categories of open innovation: inside-out and outside-in (Chesbrough 2003). Inside-out open innovation starts with a desire to apply a company’s technology to other markets in order to increase the return on investment or to anticipate a change in the market. For a large company, it is a matter of putting in place a small team to develop an area that does not fit into the global strategy. Extracting a team through a business creation allows us to benefit from the agility of a small company to find a new market. The best known example of inside-out is Adobe, which came about from a team from the Xerox research institute.

Outside-in open innovation is mobilized in cases where the company has a specific need for a skill or expertise that it does not possess internally. This may concern, for example, the desire to understand the opportunities and risks associated with the emergence of a new technology on the market. Typically, companies in sectors such as retail or insurance have seen the emergence of artificial intelligence for several years, and feel that this is likely to disrupt their business, constituting both a risk and an opportunity. In this case, they will look for external resources to innovate in this direction, because internal R&D is not specialized in this type of technology and will not be able to identify the opportunities. It can also concern the need to solve a technological or scientific problem for which the company does not have the internal expertise. In this case, open innovation is a way for the company to find external resources. This can take the form, for example, of numerous innovation competitions aimed at start-ups or hackathons in which groups of students must propose solutions to a problem encountered by the company.

In some cases, outside-in open innovation is not about generating ideas from expertise, but rather about having ideas selected by the community. For example, a company looking to quickly renew its product line can gather the community’s opinion to prioritize the products to be developed while being sure that they will meet consumer expectations.

Immersive Technologies to Accelerate Innovation

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