Three open innovation models: Which is the right one for your organization?

Open innovation refers to the belief that sources of knowledge for innovation are widely distributed in the economy. This article discusses the three key models of open innovation including outside-in open innovation, inside-out open innovation, and coupled open innovation. The outside-in innovation model involves being immersed in the mindset of external communities and customers to continually expand demand. Examples of this model include corporate start-up collaboration, supplier-sourced innovation, and university cooperation. Inside-out innovation, on the other hand, is guided by the belief that core competencies and internal strengths of an organization will generate a sustainable future. Examples include continuous improvement, intrapreneurship, and corporate incubators. Finally, coupled open innovation involves skillfully combining both outside-in and inside-out innovation to identify gaps and opportunities. Examples include customer insight and feedback, strategic partnerships and joint ventures, and networks and ecosystems.