Open Innovation can Solve Problems of Future

Context: Blockchain technology could offer credibility and support to the pursuit of open innovation.

Open Innovation

• Open innovation is where the focal organization is, working with various entities to solicit ideas, talent and capital, rallying the outcome in a collaborative manner.

Issues in Open Innovation

• Privacy, value appropriation (who should get what for their contribution) in absence of robust contracts,  intellectual property (IP) management and designing contracts. 

Way Forward

• lower spending on internal R&D: Networked approach towards innovation can compliment spending on R&D
• Contests or challenges-based model: for open innovation.
• Crowdsourcing models: to connect seekers with solvers.
• Blockchain technology: 

• It can manage the entire IP lifecycle (evidence of rights, record keeping, rights transfer and conflict resolution).
• Blockchain Smart contracts: automated computer programmes carrying terms of a contract. 
• To ensure draft, update and honour of contracts free from human intervention.
• It can manage intangible asset classes (intellectual property) with a transparent ledger system (with improved visibility of ownership).

Conclusion: Blockchain can enable innovation, especially as the pendulum swings from an insular approach to a more participative one.