Open Innovation in Industry and Academia: Driving Scale-Up and Traction

Introduction

Innovation is the process of translating ideas into valuable products, services, or solutions that address specific needs or challenges. It involves the development of new processes, business models, technologies, and systems that offer tangible benefits to society, industry, and the economy. In the fast-paced global environment, organizations, be it industries or academic institutions, constantly seek new ways to stay competitive, generate value, and enhance their problem-solving capacities.

Defining Innovation: From Concept to Scale-Up

At its core, innovation is the engine of growth for companies and institutions alike. It's the key to moving from ideas and prototypes to scalable products and services that achieve widespread market adoption, referred to as scale-up. Once innovation gains momentum and becomes commercially viable, traction follows—the ability to attract and retain customers, investors, and market attention.

However, innovation doesn’t occur in isolation. The challenge many organizations face is how to efficiently manage the process. Traditionally, many operated in what is known as a closed innovation model, but a shift towards open innovation is reshaping how both industry and academia approach this critical process.

Closed Innovation vs. Open Innovation

The closed innovation model is built around the idea that innovation occurs within the walls of an organization or institution. R&D teams work internally to discover, develop, and commercialize new technologies. In this model, the process of innovation is tightly controlled, with little input from external parties. Companies or academic institutions rely solely on their internal capabilities to generate new ideas and hold onto intellectual property (IP) to maintain a competitive edge. This method has its advantages: control over IP, strong confidentiality, and less dependence on external forces.

However, the closed innovation model also has significant limitations. It can be slow and costly, often stifling creativity and limiting access to the expertise or resources needed to bring an idea to scale. Additionally, a rigid reliance on internal resources may prevent the organization from tapping into the vast external knowledge available, especially in rapidly evolving fields like artificial intelligence, biotechnology, or advanced manufacturing.

By contrast, open innovation is a more inclusive and collaborative model that integrates external ideas, technologies, and expertise into the innovation process. This model thrives on partnerships, co-creation, and an open exchange of information between industries, academic institutions, startups, and even customers. The boundaries between an organization and its external environment become porous, leading to cross-pollination of ideas and rapid development cycles.

Open Innovation in Industry

In industry, open innovation allows companies to collaborate with external entities such as startups, universities, research labs, and even competitors to develop new products or services. This approach enables businesses to leverage external R&D and access broader pools of talent, minimizing costs and reducing the time required to bring a product to market.

A notable example is Procter & Gamble’s Connect + Develop program, where the company partners with external innovators to enhance product development. By embracing open innovation, P&G has significantly increased its rate of successful new product launches and gained valuable insights into emerging trends and technologies from external collaborators.

Open innovation also helps industries overcome scaling challenges by creating pathways to gain traction. Collaborations with research institutions or tech startups may unlock access to advanced technology, testbeds, and market validation much quicker than closed R&D efforts. Companies can create ecosystems of innovators who collectively propel projects from ideation to scale.

Open Innovation in Academia

In academia, open innovation plays a vital role in enhancing research impact and fostering real-world application. Traditional academic research often stays confined to theoretical exploration, with limited access to commercialization channels. Open innovation allows universities and research institutions to collaborate with industries, startups, and governmental bodies to bring innovations to market, making research more impactful and aligned with societal needs.

The collaboration between academic researchers and industry helps scale up promising research outcomes. For example, Stanford University's partnerships with technology companies have resulted in groundbreaking innovations in computer science and engineering, contributing significantly to Silicon Valley’s growth. Open innovation allows academic institutions to contribute to real-world challenges and share their research with industries that possess the resources to scale them.

Academic institutions also benefit from this model through better funding opportunities, practical applications of research, and increased relevance in the global innovation ecosystem.

 

Bridging Industry and Academia: The Role of Open Innovation

One of the most transformative aspects of open innovation is its ability to bridge the gap between industry and academia. Universities and research institutions often develop cutting-edge technologies but lack the resources or market connections to scale them effectively. By working with industry partners, academic institutions can translate theoretical discoveries into practical applications that benefit society.

Industries, on the other hand, can gain access to specialized research, cutting-edge technologies, and scientific expertise by collaborating with academic partners. This collaboration accelerates the pace of innovation, reduces costs, and enhances both research and commercialization outcomes.

Some companies with well-established open innovation initiatives:

1. #TataSteel Innoventures – Tata Steel’s open innovation platform fosters collaboration with startups and academic institutions to co-develop innovative solutions in materials and manufacturing. Tata Steel Innoventures https://tata-steel-innoventure.incubatehub.com/
2. #Unilever Foundry – Unilever's open innovation platform connects the company with startups and innovators to work on sustainability and product innovations across its portfolio of brands. Unilever Foundry https://www.theunileverfoundry.com/home.html
3. #Siemens Startup Program – Siemens’ program partners with startups to collaborate on technology and innovation in fields like automation, electrification, and digitalization. Siemens Startup Program https://www.sw.siemens.com/en-US/digital-transformation/xcelerator-startup-solutions/
4. #Capgemini Applied Innovation Exchange – Capgemini uses open innovation to co-create solutions with clients, focusing on AI, data, and sustainability challenges. Capgemini Applied Innovation Exchange https://www.capgemini.com/about-us/who-we-are/innovation-ecosystem/applied-innovation-exchange/
5. #GE Fuse – General Electric’s Fuse platform engages a global community of innovators to solve engineering challenges across industries like aviation, healthcare, and renewable energy. GE Fuse
6. #Lego Ideas – Lego allows its community to submit new design ideas, which can be turned into official Lego sets, showcasing a successful consumer-driven open innovation model. Lego Ideas
7. #Nestlé’s Henri@Nestlé – Nestlé invites startups and innovators to collaborate on nutrition, wellness, and sustainability challenges through its open innovation platform. Henri@Nestlé https://www.nestle-cwa.com/en/aboutus/henri
8. #Procter & Gamble Connect + Develop – P&G partners with external innovators to co-develop products and technologies for its global brands, focusing on consumer needs. P&G Connect + Develop https://www.pgconnectdevelop.com/
9. #Samsung C-Lab – Samsung’s innovation program supports in-house and external startups, encouraging open collaboration in emerging technologies like IoT, AI, and blockchain. Samsung C-Lab https://samsungclab.com/about?lang=en&ref=blog.clika.io
10. #Microsoft Garage – Microsoft promotes experimentation and open innovation through its Garage program, offering tools and a platform for employees and external partners to collaborate on projects. Microsoft Garage

11.   #Airbus BizLab – Airbus offers a global accelerator program for startups and SMEs to collaborate on innovations in aerospace and related sectors. Airbus BizLab https://www.airbus.com/en/airbus-bizlab

12.   #Shell GameChanger – Shell’s open innovation platform seeks to support startups and innovators working on breakthrough energy solutions. Shell GameChanger https://www.shell.com/what-we-do/technology-and-innovation/innovate-with-shell/shell-gamechanger.html

13. #IBM Innovation Jam – IBM hosts innovation jams to crowdsource ideas from employees, customers, and partners on topics like AI and cloud computing. IBM Innovation Jam https://www.ibm.com/thought-leadership/institute-business-value/en-us/report/digital-collaboration-speed-relevance

14. #Johnson & Johnson Innovation - JLABS – This initiative supports life science and healthcare startups, providing access to resources and expertise. JLABS by Johnson & Johnson https://jnjinnovation.com/jlabs

15. #Bosch Open Innovation Platform – Bosch connects with startups and external experts to co-create new technologies and solutions in IoT, automotive, and industrial automation. Bosch Open Innovation Platform https://innovate-bosch.com/

16. #Orange Fab – Orange’s open innovation accelerator helps startups develop products and services related to telecom, IoT, and digital experiences. Orange Fab

17. #PepsiCo Greenhouse Accelerator – PepsiCo’s open innovation initiative provides mentorship and funding for startups focused on sustainable food and beverage innovation. PepsiCo Greenhouse Accelerator https://greenhouseaccelerator.com/

18. #Hyundai CRADLE – Hyundai’s open innovation initiative invests in startups working on smart mobility, AI, robotics, and other emerging technologies. Hyundai CRADLE

19. #Volkswagen Innovation Hub – Volkswagen partners with startups and research institutions to develop mobility solutions and sustainable automotive technologies. Volkswagen Innovation Hub https://www.openinnovation-volkswagengroup.com/

20. #Sony Startup Acceleration Program – Sony’s initiative provides mentoring, funding, and support for external startups in areas like gaming, entertainment, and AI. Sony Startup Acceleration Program https://sony-startup-acceleration-program.com/

21. #Barclays Rise – Barclays offers a global open innovation platform for fintech startups to work on next-gen financial solutions. Barclays Rise

22. #Intel Ignite – Intel’s accelerator program works with deep tech startups to help them scale their innovative solutions in computing and data. Intel Ignite https://intelignite.com/

23. #Daimler Startup Autobahn – Daimler collaborates with tech startups to accelerate innovations in automotive technology and mobility solutions. Daimler Startup Autobahn

24. #Novartis Biome – Novartis’ digital innovation hub collaborates with tech startups and health innovators to improve patient outcomes through digital health solutions. Novartis Biome https://www.biome.novartis.com/innovation-hubs

25.  #Ericsson Garage – Ericsson’s open innovation platform fosters collaboration with startups on AI, 5G, IoT, and other cutting-edge technologies. Ericsson Garage https://www.linkedin.com/pulse/ericsson-garage-incubator-program-pawel-szczerkowski/ venture studio- https://www.ericsson.com/en/ericsson-one

26. #Amazon Web Services Activate – AWS supports startups with cloud credits, mentorship, and technical resources to scale their innovative solutions. AWS Activate

27. #Nike Valiant Labs – Nike’s open innovation lab supports startups and entrepreneurs creating products and services in the fitness and wellness industry. Nike Valiant Labs https://www.crunchbase.com/organization/nike-valiant-labs

28. #Cisco LaunchPad – Cisco’s open innovation platform accelerates deep tech startups working on networking, IoT, and cybersecurity. Cisco LaunchPad https://launchpad.cisco.com/

29. #Allianz X – Allianz’s digital investment arm collaborates with startups to co-create insurance technology solutions, particularly in insurtech and fintech. Allianz X

30. #Danone Manifesto Ventures – Danone’s open innovation initiative invests in food and beverage startups that focus on sustainability and healthy eating. Danone Manifesto Ventures

A few other who have Open Innovation

·  #Philips (Philips Open Innovation) Philips Innovation

·  #GlaxoSmithKline (GSK Open Innovation) GSK Open Innovation

·  #Ford (Ford Innovation) Ford Open Innovation

·  #Pfizer (Pfizer Innovation & Partnering) Pfizer Innovation

·  #Samsung (Samsung NEXT) Samsung NEXT

·  #3M (3M Open Innovation) 3M Open Innovation

·  #Intel (Intel Innovators) Intel Innovators

·  #BMW (BMW Startup Garage) BMW Startup Garage

·  #Coca-Cola (Coca-Cola Founders Platform) Coca-Cola Founders

·  #Novartis (Novartis Biome) Novartis Biome

·  #Amazon (Amazon Launchpad) Amazon Launchpad

·  #Facebook (Facebook Open Innovation) Facebook Innovation

·  #T-Mobile (T-Mobile Open Innovation) T-Mobile Innovation

·  #Dell Technologies (Dell Innovation Labs) Dell Innovation

·  #Hitachi (Hitachi Open Innovation Lab) Hitachi Open Innovation

·  #Cisco (Cisco Innovation Grand Challenge) Cisco Innovation Challenge

Conclusion

The transition from closed to open innovation is not just a trend but a necessary shift for organizations looking to remain competitive in today’s interconnected world. Open innovation offers a more dynamic, collaborative approach to developing, scaling, and gaining traction with new ideas. By leveraging external partnerships, industries and academic institutions can unlock untapped potential, drive efficiency, and speed up the innovation process. In the long run, open innovation will continue to play a critical role in shaping the future of research, development, and commercial success.