Collaborative innovation for more value : how to make it work

Purpose: The purpose of this paper is to focus on “how to create value from collaborative innovation,” which is a core question when companies plan open-innovation initiatives. China’s Huawei Technologies is taken as the main case study, with other companies’ practices as further examples to elaborate and validate a new yet practical model. Design/methodology/approach: This paper is based on the direct experience over many years of two Huawei technology executives – the very recent head of the technology cooperation department and the current manager of the same unit. Findings: This study provides a spiral four-stage model, named SWIM, with each stage being a decision guided by a 2 × 2 matrix. These stages, named scope, weave, identify and modularize, try to balance resource allocation toward a foreseeable value, though it might be long term. Research limitations/implications: The research is primarily based on one company. The validity of its recommended model can be tested only after other companies have applied it. Practical implications: The research offers a practical framework for how companies can improve their open innovation. Social implications: Large companies are important players in innovation networks. Improving the ability of large companies to operate open innovation will help many other companies and the society as a whole. Originality/value: The proposed model is original and provides insights from China and is not a traditional source of management innovation. The paper will also help Western readers get a better understanding of management in what will soon be the world’s largest economy.