Question

in an essay, discuss the difference between close and open innovation and the reasons behind the increase in technological entrepreneurship due to open innovation

Answer 1

In today's world, everything is moving so fast due to which within a small span of time we are changing our living style, comforts etc. But how we are changing ourself too quickly? The reason is " innovation " as innovation has the power to affect human's way of living and standards.

As we all know that this century is all about science and technology, therefore where science and technology comes then that is for sure that "innovation" will automatically come in the picture. Innovation is nothing but a new idea, new imagination or a creative thought which aims to provide better solution for our requirements.

Basically innovation is of two types- close innovation and open innovation , so what is difference in it as both are innovations. So the major difference is that a closed innovation is developed in a self-contained company environment whereas open Innovation incorporates external knowledge into innovation management.

In closed innovation, any innovation is going to perform inside any firm or organisation's boundary whereas in open innovation, innovation is performed beyond the boundary of any particular firm to collaborate with the outside talent.

In closed innovation, there is no any import or export of knowledge, whereas in open innovation, import and export of knowledge takes place outside the innovater company.

Also, in closed innovation, the employees must be best and highly qualified to perform any innovation inside company that means company must recruit best employee of the market to perform research and development whereas in open innovation company works with the bright talent of inside and outside of that company.

The main aim of close innovation is to bring their innovation first in the market whereas open innovation only focuses on developing a better business model rather than being the first on the market.

But as per the statistics and research, open innovation is growing very rapidly that means new startups and companies are focusing on open innovation. There are various reasons behind this trend but some of them are like Open innovation is providing more research oriented environment as it gives oppertunity to work with brightest mind of market by crossing the limit of organisation's boundary.

Other reason for increase of technological entrepreneurship by open innovation is due to the availability and mobility of highly qualified specialists is increasing which ultimately pushes to opt for open innovation. And other reason may be the increasing number of competent customers and specialized suppliers available as cooperation partners in open innovation. That are the major reasons for the increase in technological entrepreneurship due to open innovation.

# Hope this will help you and thank you very much.

# Feel free to ask any doubt.