Delivering on the promise of open innovation

Purpose – For all the rhetoric – and hype – about open innovation, the reality is that few corporations have institutionalized open innovation practices in ways that have enabled substantial growth or industry leadership. This paper aims to explain how open innovation can achieve its potential in most companies. Design/methodology/approach – Three cases of companies that practice various types of open innovation are discussed. The principles of establishing an organizational environment for open innovation are outlined. Findings – The ability to move into and out of different industries by capitalizing on ideas and concepts from inside and outside the organization – open innovation – has tremendous value. Practical implications – Without the appropriate mindset and, ultimately, operational structure in place, the promise of open innovation cannot be realized. Originality/value – For corporate leaders, the paper identifies a key first step – to deliver on the promise of open innovation an organization must start by making the change from a competition‐focused, market‐share mindset to a competence‐based mindset.