Corporate Open Innovation

I came across an interesting article about open innovation by David Simoes-Brown entitled “Corporate open innovation – if it's so good why isn't everyone doing it? “ http://www.nesta.org.uk/informing/articles/corporate_open_innovation.aspx

He talks about how Corporate Open Innovation (COI) enjoys high profile proponents, such as Procter & Gamble, Philips, the BBC, Nokia, and Apple. Technology companies such as IBM, HP, and Cisco are starting to adapt their internal product lifecycle and development to accommodate open innovation. All these companies explore external collaborators to originate or develop innovations. This is different from traditional 'closed' innovation, where in-house research and development (R&D) is the primary catalyst behind the introduction of new products and services. However, these companies are in the minority when it comes to the adoption of COI practices. Why is that?
The following are some of the reasons most often cited:
Intellectual property. Who will gain reward from the exploitation of patents?
Complexity. Managing diverse teams is a key issue for open innovation projects.
Interdependence. Understandably, many companies are reluctant to place their futures in the hands of others. The emotional issues of power and control.
Culture and tradition. Companies have much invested in their innovation processes which are tried and tested.
Psychology. It can be difficult for a business steeped in the principles of competition to embrace cooperation. There is a suspicion of outsiders and a habit of secrecy.

Through much of the literature I have read, it appears that the results for early adopters of open innovation have been favorable. However, in order for companies to feel more comfortable utilizing COI, there will need to be a supporting infrastructure designed to reduce the complexity of coordinating efforts within a collaborative environment and address legal considerations pertaining to intellectual property rights. Regarding the issues of interdependence ,culture, etc., companies will perhaps need to reexamine their assumptions around what they believe their core competencies are. Companies who believe R&D differentiates them may be correct to a point, but I would suspect that their ability to market and implement the ideas generated internally is what truly gives them a competitive advantage.

“Don't worry about people stealing your ideas. If your ideas are any good, you'll have to ram them down people's throats.”
Howard Aiken
US computer scientist (1900 - 1973)