Before being open, innovation happened in closed environments often performed by individuals, scientists or employees. However, the expression closed innovation was coined later and not before the paradigm of

open innovation Open innovation is a term used to promote an information age mindset toward innovation that runs counter to the secrecy and silo mentality of traditional corporate research labs. The benefits and driving forces behind increased openness have bee ...

became popular by works of

Henry Chesbrough Henry William Chesbrough (born 1956) is an American organizational theorist, adjunct professor and the faculty director of the Garwood Center for Corporate Innovation at the Haas School of Business at the University of California, Berkeley and Mai ...

Chesbrough, H.W. (2003). Open Innovation: The new imperative for creating and profiting from technology. Boston: Harvard Business School Press and

Don Tapscott Don Tapscott (born June 1, 1947) is a Canadian business executive, author, consultant and speaker, who specializes in business strategy, organizational transformation and the role of technology in business and society. He is the CEO of the Tapsco ...

et Anthony D. Williams Closed innovation was described in March 2003 by

, a professor and executive director at the Center for Open Innovation at

UC Berkeley The University of California, Berkeley (UC Berkeley, Berkeley, Cal, or California) is a public university, public land-grant university, land-grant research university in Berkeley, California. Established in 1868 as the University of Californi ...

, in his book ''Open Innovation: The new imperative for creating and profiting from technology''. The concept is related to

user innovation __NOTOC__ User innovation refers to innovation by intermediate users (e.g. user firms) or consumer users (individual end-users or user communities), rather than by suppliers (producers or manufacturers). This is a concept closely aligned to co-des ...

know-how trading Know-how trading is a web-based research and design phenomenon related to open innovation and crowdsourcing.http://stuff.mit.edu/people/evhippel/papers/Knowhow%20Trading.pdf Hippel on Know-How trading It denotes fee-based knowledge markets that t ...

and mass innovation and subject of recent research projects

Origin

The paradigm of closed innovation says that successful innovation requires control and ownership of the

Intellectual property Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, cop ...

(IP). A company should control the creation and management of ideas. Roots of closed innovation go back to the beginning of the twentieth century when universities and governments were not involved in the commercial application of science. Some companies therefore decided to run their own research and development units. The entire new product development (NPD) cycle was then integrated within the company where innovation was performed in a "closed" and self-sufficient way. The period between the end of

World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...

and the mid-1980s was the era of closed innovation and internal R&D. Many R&D departments of private companies were at the leading edge of scientific research. The setup of internal R&D was perceived as a strong barrier for potential new competitors, as large investments had to be made to be able to compete Often, closed innovation paradigms are set equal to the “Not Invented Here” syndrome sometimes referred to by decision makers: everything coming from outside is suspicious and not reliable. However, there are ongoing research projects and emerging companies that investigate the pros and cons of closed innovation versus open innovation.

Comparison with open innovation

adapted from

Towards open innovation

In the ''29th Information Systems Research Conference in Scandinavia'' in 2006 the transition path from closed innovation to

was formally described. As a result, it was found that when seeking to increase customer loyalty and attracting new customers, companies needed to increase customer involvement in research and design (R&D) operation. Brokering and social networking processes lie at the heart of the open innovation paradigm. The technology brokering process model by Hargadon and Sutton (1997)Hargadon, Andrew; Sutton, Robert I. "Technology brokering and innovation in a product development firm." Administrative Science Quarterly, 1997 describes the shift towards open innovation.

References

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