I am frequently asked, “Why should my company adopt Open Innovation?”
My new response will be, “Don’t you want 17% growth in earnings each year.”
Let me explain.
Recently, I visited a client who has been very active in Open Innovation for the last five years. They have established many collaborations, licensing deals, joint ventures and (even) acquisitions.
They were reviewing their progress and realised that their earnings have grown by 17% per year since adopting an open approach five years ago.
The earnings of their six nearest competitors, who are much less active in Open Innovation, have grown by between 2 and 5% per year.
This is one of the best examples of the benefits of Open Innovation that I have heard.
Now, if I meet someone struggling to take an open approach, instead of giving a long explanation of all the benefits, I will use this example.