Creating successful innovation partnerships

Open Innovation (OI) is a term promoted by Henry Chesbrough and defined as a paradigm that assumes firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firm look to advance their technology. Nestlé Co. utilizes open innovation, new business models, trust and goodwill, to co-develop innovation with partners and produce value for consumers and customers. The company's approach to OI is to combine internal resources with external assets. It applies OI by tapping into technologies and expertise of more than a million researchers worldwide, including science universities, venture capital, strategic suppliers, and government laboratories. Companies engaging in innovation partnerships must ensure that their joint work meets all rules and regulations surrounding anti-trust. Organizations should apply a disciplined approach to the innovation process to drive value creation.