מציגים :רעות סינטר אביעד חבל The Kinds of Innovation There are two kinds of Innovation: • Close Innovation • Open Innovation The Closed Innovation Model In Close Innovation, a company generates, develops and commercializes its own ideas. The Open Innovation Model In Open Innovation, a company commercializes both its own ideas as well as innovations from other firms and seeks ways to bring its in-house ideas to market by deploying pathways outside its current businesses. From Close to Open The main factors for the transformation: • The rise in the number and mobility of knowledge workers. • The growing availability of private venture capital. These factors gave the scientists and engineers the ability to pursue a discovery when a company doesn’t pursue it in time. How Prevalent Is Open Innovation? All industries have been or will be migrating to Open Innovation. They changed their R&D from internal to external. For example: Computers Semiconductors Telecommunications systems equipment military weapons and communications systems The Different Modes of Innovation Funding Innovation Generating Innovation Commercializing Innovation Funding Innovation Innovation investors – they provide funds to small independent businesses, and help move ideas out of corporations and universities into the market through creation of startups. Benefactors –benefactors focus on the early stages of research discovery, they get a first look at the ideas and can choose to found those that seem favorable for their industry. Generating Innovation Innovation explorers – specialize in preforming the discovery research function that previously took place within corporate R&D labs. Innovation merchants – like the explorer but their activities focused on a narrow set of technologies. Innovation architects – in order to create a new valuable product they divide the system into pieces allowing each company to focus on one part. Innovation missionaries – people and organizations that create and advance technologies without thinking of profit. Commercializing Innovation Innovation marketers – focus on developing a deep understanding of the current and potential needs in the market in order to profit from market ideas. Innovation one-stop centers – take the best ideas in the market and deliver it to their customers at competitive prices. Unlike marketers, they have unshakable connection with the end users. In conclusion External R&D can create significant value. Companies don’t have to originate the research in order to profit from it. Building a better business model is better than getting to market first. Making the best use of internal and external ideas. The Open Innovation is so unstoppable that companies are “been forced” to migrate to open innovation like LEGO company.