Mission Statement
Open Innovation
The term Open Innovation was mainly shaped by Henry Chesbrough, UC Berkeley. The central idea behind the concept of Open Innovation is that companies in a world of widespread knowledge cannot entirely rely on their own research in order to be innovative, but they are increasingly reliant on the integration and application of external information and competencies.
Understood in this way, Open Innovation constitutes a further development of the user innovation concept by Eric von Hippel, MIT Sloan. Von Hippel describes the phenomenon that creativity of users of a certain product frequently is more responsible for innovation than the invention of the manufacturer itself. Therefore he introduces the term of Lead Users. Frank Piller and Ralf Reichwald, MIT Sloan/TU Munich, have lately extended this user-orientated approach of Open Innovation to the concept of interactive creation of value, combining Open Innovation with the concept of Mass Customization for customer specific products.
These approaches were and are important contributions for a deeper understanding of the concept of Open Innovation. For being able to describe all developments we have found in this context, we want to suggest an even wider definition of Open Innovation in order to meet the expectations we see in the potential of User Generated Innovation. We therefore define Open Innovation as the competence to aggregate decentralized information and resources within an open process to decisions out of that innovations can arise.
Open Entrepreneurship
Besides Open Innovation we want to deal with another approach which in our opinion could implicate enormous changes for society. Following up our mentioned understanding of Open Innovation, we assess the value of user generated content (UGC) compared with content professionally generated by all means as mostly high. The quality of user generated content cannot be condemned wholesale as inferior.
By the interface of the internet it has not only become possible to spread self-produced content or to take part in communication, but to be creatively active in many other spheres. Companies and individuals are trading with tangible and intangible goods and offer them worldwide to others. For instance, talented people are designing or improving products in initiative of their own and providing them to others who often enthusiastically use them. Almost unnoticed, a huge amount of small and large innovations is created this way. In many cases the results are good enough that companies and individuals would accept to pay for this knowledge or these goods. By the creativity of users, values have been created.
Our approach of Open Entrepreneurship puts, on the basis of this, the creation of value in networks in the centre of attention. The possession of capital is no longer a necessary condition for entrepreneurship. Particularly the internet provides people the opportunity to become an entrepreneur in network structures and to use a worldwide market for their knowledge and tradable goods. Even if people are not producing goods or providing services on their own, but take only an intermediary role like in affiliate networks, they can though appear as “mini-entrepreneurs” actively contributing to the creation of value. Furthermore through collaborative work, networks of individuals can realize even extensive projects by division of labor. The central challenge for Open Entrepreneurship is switching innovations generated in networks to hierarchies or markets.
In this context, our approach of Open Entrepreneurship also extends the concept of Commons Based Peer Production by Yochai Benkler, Yale, who focuses especially in regard to Open Source on the collaborative production of knowledge-based goods.
Openeur – Open Innovation & Entrepreneurship
On the basis of our approaches to Open Innovation and Open Entrepreneurship, we would like to venture on the attempt of a synthesis. From our point of view both approaches are interacting and built on each other. Only in combination they allow a deeper understanding for the existing potentials of both concepts.
Therefore we have identified a new type of entrepreneur who combines elements of both approaches and who makes innovation on the whole more likely to happen by acting in network structures together with other users or companies - the Openeur.
Openeurs are according to that companies or single individuals who take advantage of the opportunities of Open Innovation through collaborative work in network structures and who generate added values in networks out of their knowledge, faculties, products or services. The Openeur extends regarding to this also Schumpeter’s entrepreneurial concept of creative destruction especially for the creation of values in networks which can widely lead to synergies between participants of these networks.
The fascination we have with regard to Open Innovation & Entrepreneurship, we want to describe on this blog in the future and to report on the recent developments in this context. Thereby we want to look on the topic of Open Innovation & Entrepreneurship both from a scientific point of view and from a management-oriented perspective in order to contribute to a broad understanding for the potential of these approaches.
Friedrichshafen, 1st of December 2006
Steffen Höllinger & Johannes Heinze
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