According to Henry Chesbrough, author of several books of Open Innovation (OI) and Open Business Models, OI “is a more distributed, more participatory, more decentralized approach to innovation, based on the observed fact that useful knowledge today is widely distributed, and no company, no matter how capable or how big, could innovate effectively on its own.
Yet at the same time there is a critical role for an overarching architecture that connects these seemingly disparate activities together. And the business model (which itself can be innovated) determines what companies look to bring inside the firm and allow to go outside the firm. […] For business, open innovation is a more profitable way to innovate, because it can reduce costs, accelerate time to market, increase differentiation in the market, and create new revenue streams for the company.”
‘Open’ can’t mean giving away intellectual property, especially if one is a for-profit firm. But open has to mean powerful new forms of corporate and government social responsibility–and more relevant nonprofits that take innovation cues from the private sector–and government innovation entities like NASA.