Chapter 13 Implementing Open Innovation: Challenges in Linking Strategic and Operational Factors for Large Firms Working with HTSFs

Innovation is an increasingly distributed process, involving networks of geographically dispersed players with a variety of possible, and dynamic, value chain configurations ( Fraser, Minshall, & Probert, 2005 ). ‘Open innovation’ is one term that has emerged to describe ‘[…] the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively’ ( Chesbrough, Vanhaverbeke, & West, 2006 ). This is contrasted with the ‘closed’ model of innovation where firms typically generate their own ideas which they then develop, produce, market, distribute and support.