Friday, May 30, 2008

Open Innovation Becoming Significantly Important

In a recent commentary article at Forbes.com, Edward Bernstein, took a moment to comment on the ever growing importance of open innovation.


US companies are seeing today that it’s important for them to reach out and work with other companies throughout the world in order to bring the best thoughts and ideas into their company. A common theme for this in the United States is to look to other countries for their knowledge to help bring in new ideas.


Bernstein pointed out that one of the reasons a lot of a company’s innovation may be done overseas is because they’re close to the local market. How is innovation for a product suppose to turn out for the best if we’re innovating in the United States for an eastern European company? He also pointed out that a lot of innovation is done China and India, due to their growing markets and expansive knowledge on many topics.


I was intrigued by this:


For the U.S., this may become a serious problem, as our increasingly strict immigration policies prevent top students, who come here to study at our universities, from staying and working here.


Do you think this could be a significant problem in our future?


1 comment:

Brendan Dunphy said...

There is evidence that 'innovation follows the market' and the mobile phone device industry is a good example. The USA lead with Motorola but as Europe developed a single standard and therefore pan-European market Ericsson and Nokia overtook Motorola. The European market is now saturated and market growth is now in emerging markets led by China and India. The challenge for the European vendors is to rapidly adapt to this shift or in-turn lose their dominance. So far, Nokia is maintaining its global lead with approx 40% market share by ‘distributing’ product development to these lower-cost growth markets and thereby maintaining relevance. But will it need to make a more fundamental shift as new competitors in these markets achieve critical mass and the ability to not only conceive innovative products specific to local markets, but also local control of the assets necessary to make them a reality and without top-heavy European cost-structures?

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