Page 25 - Gričar, Sergej, Barbara Rodica and Štefan Bojnec, 2016. Sandwich Management. Koper: University of Primorska Press
P. 25
Inovation in SME 25
portance of constructing barriers. This means that developers developed
inventive ideas within the scope of their own research abilities and knowl-
edge without outside help. They mostly used internal resources and great-
ly protected and shielded their knowledge and intellectual property from
the external environment. They did not promoting value creation through
openness. This is often connected with the availability of personnel, high
implementation costs of innovating and other factors that could present
a great problem to small and medium-sized enterprises. In the case of the
closed model of innovation enterprises base their operation on the suppo-
sition that the innovation process is controlled by the enterprise itself and
that it is self-sufficient. Toward the end of the 20th century, though, a num-
ber of factors combined to erode the underpinnings of closed innovation.
As an upgrade a new method of innovation is being presented, called open
innovations. It is based on the supposition that enterprises must open up
their business operations in order to achieve greater innovativeness, and to-
gether with external partners take advantage of internal and external ideas,
technologies and resources. In model of open innovation, enterprises com-
mercialize external (as well as internal) ideas by deploying outside (as well
as in-house) pathways to the market. It must be ascertained with which en-
tities from the organisational environment the enterprises are connecting
and in what way (Rodica, Starc, and Konda 2014, 703–13).
The concept of open innovation shows that the understanding of the
importance of knowledge outside a company is changing. Open innovation
has been variously described as a process, a set of interfirm relationships,
and a cognitive paradigm. As originally explained by Henry Chesbrough
(2003): »Open Innovation is a paradigm that assumes that firms can and
should use external ideas as well as internal ideas, and internal and external
paths to market, as the firms look to advance their technology. Open In-
novation combines internal and external ideas into architectures and sys-
tems whose requirements are defined by a business model.« Chesbrough
(2011) defines (more recent) open innovation as the use of purpose-specific
inflows and outflows of knowledge to accelerate internal innovations, and
expand the market for external use of innovations. This paradigm assumes
that enterprises can and should use external ideas as well as internal ide-
as and also internal and external paths to market, as they look to advance
their technology. Chesbrough (2011) distinguish between two facets to
open innovation: One is the »outside in« aspect, where external ideas and
technologies are brought into the enterprises own innovation process. This
is the most commonly recognized feature of open innovation. The other,
less commonly recognized aspect is the »inside out« part, where un- and
portance of constructing barriers. This means that developers developed
inventive ideas within the scope of their own research abilities and knowl-
edge without outside help. They mostly used internal resources and great-
ly protected and shielded their knowledge and intellectual property from
the external environment. They did not promoting value creation through
openness. This is often connected with the availability of personnel, high
implementation costs of innovating and other factors that could present
a great problem to small and medium-sized enterprises. In the case of the
closed model of innovation enterprises base their operation on the suppo-
sition that the innovation process is controlled by the enterprise itself and
that it is self-sufficient. Toward the end of the 20th century, though, a num-
ber of factors combined to erode the underpinnings of closed innovation.
As an upgrade a new method of innovation is being presented, called open
innovations. It is based on the supposition that enterprises must open up
their business operations in order to achieve greater innovativeness, and to-
gether with external partners take advantage of internal and external ideas,
technologies and resources. In model of open innovation, enterprises com-
mercialize external (as well as internal) ideas by deploying outside (as well
as in-house) pathways to the market. It must be ascertained with which en-
tities from the organisational environment the enterprises are connecting
and in what way (Rodica, Starc, and Konda 2014, 703–13).
The concept of open innovation shows that the understanding of the
importance of knowledge outside a company is changing. Open innovation
has been variously described as a process, a set of interfirm relationships,
and a cognitive paradigm. As originally explained by Henry Chesbrough
(2003): »Open Innovation is a paradigm that assumes that firms can and
should use external ideas as well as internal ideas, and internal and external
paths to market, as the firms look to advance their technology. Open In-
novation combines internal and external ideas into architectures and sys-
tems whose requirements are defined by a business model.« Chesbrough
(2011) defines (more recent) open innovation as the use of purpose-specific
inflows and outflows of knowledge to accelerate internal innovations, and
expand the market for external use of innovations. This paradigm assumes
that enterprises can and should use external ideas as well as internal ide-
as and also internal and external paths to market, as they look to advance
their technology. Chesbrough (2011) distinguish between two facets to
open innovation: One is the »outside in« aspect, where external ideas and
technologies are brought into the enterprises own innovation process. This
is the most commonly recognized feature of open innovation. The other,
less commonly recognized aspect is the »inside out« part, where un- and
