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SVM’s origins at UC Berkeley Haas School of Business Center of Growth Markets.
Prof Solomon Darwin founded Smart Village Movement on Henry Chesbrough’s concept of Open Innovation. Dr. Henry Chesbrough is the co-founder of the Open Innovation Community and created the theory and coined the term “Open Innovation.” He is Executive Director of the Center for Open Innovation at the Haas School of Business at the University of California, Berkeley,
In his own words, “The term Open-Innovation has come to mean an idea that companies need to make much greater use of external ideas and technologies in their own business and let unused internal ideas and technologies go outside to be used in other company’s businesses. The prevailing wisdom at the time (in the past) was if you want something done right, do it yourself. This new logic of open innovation turns that completely on its head and says the way that you win now is through collaboration, through sharing, through working together and building on top of one another, moving faster than other companies. Your competitive edge now comes from having more people work with you than anyone else.”:
Thus, Open Innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology. Open Innovation combines internal and external ideas into architectures and systems whose requirements are defined by a business model.
Henry Chesbrough, Open Innovation: The New Imperative (2003)
Knowledge has now become widespread and innovative ideas must be used quickly for better, more cost-efficient outcomes. This change offers novel ways to create value. However, we must of course, still perform the difficult and arduous work necessary to convert promising research results into products and services that satisfy customer needs. Innovators must integrate their ideas, expertise and skills with those outside the organization to deliver the result to the marketplace, using the most effective means possible.
In short, organizations that can harness outside ideas to advance their own businesses while leveraging their internal ideas outside their current operations will likely thrive in this new era of open innovation.
So, what is open innovation exactly?
We discussed how it is a mindset of being open to sharing and receiving information. But what does that mean in practical terms, and does it make good business sense in a Capitalist Market?
In my opinion, the best way to look at it is by comparing it to the more conventional ”closed innovation”.