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What are the disadvantages of open innovation?

Annie Barnes

in Higher Education

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1 answer

Karen Wright on July 30, 2018

The loss of control
-Does not usually have a tight control of external resources as internal

Higher complexity of managing innovation
-Need to continually consider external relationship management, intellectual property, confidentiality, etc

Higher costs of coordination
-Will usually cost to coordinate external resources (though may save through reduced cost of resources)

The possible loss of knowledge
-If have technical knowledge in a field, do not use it, but having to depend on others for the knowledge will lead to decay of value of your own

Possible loss of competitive advantage
-If allow others to develop their skills in the area of importance for the company, they can sell their expertise to your competitors (contracts can mitigate the risk)

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