Open Innovation:
"A process characterized by insemination of new technologies and know-how by industrial companies from external sources, rather than from internal sources (internal R&D)."
Why do countries and companies need Open Innovation?
Open Innovation is considered today a key element for competitive challenges in modern and growing markets. Open Innovation allows competitiveness in fast growing economies to reside side by side with the rising standard of living in ones own economy. The need for Open Innovation happened in parallel with the continuous exponential development of technologies in the past few decades and processes in the international macro-economy:
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Development of advanced technologies which accelerated development and modernization of transportation means and digital communication capabilities.
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The creation of a "global village"
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Economic power of a nation is considered more important than its military power. Thus, technologies become stronger than territories.
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The need to ensure a continuous and sustainable growth of a national economy becomes the goal of the leaders of any modern country
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The strength of a large national economy derives from its industrial strength.
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The large industrial companies become the carrier of the strong economies of big countries, as being the pillars of the domestic industry.
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Competition in the market of consumer products occurs in particular on price and quality, but there are also many other critical parameters, such as: brand, service, trust/confidence, etc.
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Labor costs are associated with geographical areas (developing vs. developed countries) and is directly related to the standard of living. Therefore, a country which is successful in developing its economy, is automatically associated with reducing the competitiveness of its industrial sector.
To sustain both economic growth and maintain the standard of living - A strong industrial sector is needed. And, the only way left to keep a permanent growth of an industrial sector is by having big companies introduce into large consumer markets new products. New products derives from technology, their competitiveness is much less relevant and therefore the manufacturing costs can allow higher labor cost.