Four Models for Corporate Transformative, Open Innovation

Abstract

Four models are identified for organizations to pursue simultaneous core growth and transformative innovation leveraging open innovation principles: 1) corporate accelerators —engage with or create autonomous startups; 2) external startup platforms — engage with startups through established third parties, 3) consortia or alliances — leverage resources of peers and emergent players across the innovation ecosystem; and; 4) direct entrepreneurial approach -- work from within the organization to develop new units. We identify “innovation maturity” as the key factor to select which model is most appropriate for the organization. Additional considerations include the resources, processes and values of the organization, and the developmental status of the transformative technology. Model choice(s) are dynamic and can evolve over time as the innovation capacity of the organization matures and adapts to change.