Open Innovation
Open Innovation
Case: W. L. Gore & Associates, Inc
Introduction
In light of the trend towards open innovation, inter-organizational technology transfer by means of alliances and licensing has become a key component of the open innovation processes. In this assignment we will discuss how open innovation can be the key of success and open up different opportunities, describe innovation in terms of what managerial consequences it can have on a company and try to find out what can be the driving forces of innovation in a company.
The company
We have chosen W. L. Gore & Associates, Inc. as an example of an innovative company. Gore does research in use of its advanced technology in four main areas: electronics, industrial, medical and fabrics. The company is American, founded in 1958 and today it has about 7000 employees and facilities in more than 30 countries. (Gore 1, 2011) W.L. Gore & Associates is a company with a long history of innovation. In the beginning R&D and product development was conducted inside the organizational boundaries and the firms’ critical technological knowledge was primarily developed and applied in-house, in other words they pursued traditional, closed innovation processes. (Lichtenthaler et al. 2010) In recent decades, W.L. Gore & Associates also actively collaborate with external partners throughout the innovation process. They do this in two ways:
Firstly, Gore acquire technology from external sources to complement their internal R&D through strategic alliances which is known as inward technology transfer and requires absorptive capacity to acquire and utilize external knowledge (Lichtenthaler et al. 2010).One example is the strategic alliance with Sefar AG for the Architectural Fabrics Texchtestile 2009 in Frankfurt am Main (Gore 1, 2011). Secondly, they exploit their own technology in outbound open innovation processes through licensing agreements to generate additional income, which requires
Case: W. L. Gore & Associates, Inc
Introduction
In light of the trend towards open innovation, inter-organizational technology transfer by means of alliances and licensing has become a key component of the open innovation processes. In this assignment we will discuss how open innovation can be the key of success and open up different opportunities, describe innovation in terms of what managerial consequences it can have on a company and try to find out what can be the driving forces of innovation in a company.
The company
We have chosen W. L. Gore & Associates, Inc. as an example of an innovative company. Gore does research in use of its advanced technology in four main areas: electronics, industrial, medical and fabrics. The company is American, founded in 1958 and today it has about 7000 employees and facilities in more than 30 countries. (Gore 1, 2011) W.L. Gore & Associates is a company with a long history of innovation. In the beginning R&D and product development was conducted inside the organizational boundaries and the firms’ critical technological knowledge was primarily developed and applied in-house, in other words they pursued traditional, closed innovation processes. (Lichtenthaler et al. 2010) In recent decades, W.L. Gore & Associates also actively collaborate with external partners throughout the innovation process. They do this in two ways:
Firstly, Gore acquire technology from external sources to complement their internal R&D through strategic alliances which is known as inward technology transfer and requires absorptive capacity to acquire and utilize external knowledge (Lichtenthaler et al. 2010).One example is the strategic alliance with Sefar AG for the Architectural Fabrics Texchtestile 2009 in Frankfurt am Main (Gore 1, 2011). Secondly, they exploit their own technology in outbound open innovation processes through licensing agreements to generate additional income, which requires