Innovation through interaction - the concept of open innovation in theory and in practice

Abstract

Open innovation is one of the most discussed topics connected to innovation, based not only on the search for new ideas and solutions but also on the emphasis for cooperation and the benefit of the diffusion of knowledge and dialogue. An innovative company should not construct an iron curtain separating it from the influence of the market and competition but participate in the exchange of ideas whether internal or external. The concept of open innovation is the foundation of the above idea, meaning an innovation management strategy which benefits from both internal and external sources, the constant monitoring of the latest scientific achievements, investment in patents, competitor’s licences and making unutilised research projects available to others. This paper will show the characteristics and examples of the above strategy application, which prove that innovation processes, appropriately applied to market needs, may generate concrete benefits, both for worldwide corporations and small and medium-sized companies, as it is the consumer that significantly builds the market of innovations and therefore can be considered its co-constructor.