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Article
Open Innovation and Strategy
California Management Review
  • Henry W. Chesbrough, University of California - Berkeley
  • Melissa M. Appleyard, Portland State University
Document Type
Article
Publication Date
10-1-2007
Subjects
  • Barriers to entry (Industrial organization),
  • Diversification in industry,
  • Branding (Marketing),
  • Business planning,
  • Intellectual cooperation
Abstract

The article discusses a process of business innovation known as open innovation and its relation to traditional business strategy. The competitive strategy developed by Michael Porter emphasized rivalry, buyer power, and barriers to entry as forces that could enhance a producer's surplus. The authors discuss the impact of the Porterian value chain, the processes of production through to the consumer, on subsequent business practices. However, this theory does not account for external sources of value to a company, such as innovation communities, volunteer contributors and surrounding networks, including social networking web sites, open source software and the Wiki model of open contributions. The concept of openness requires shifting from ownership to value creation and value capture.

Description

This is the publisher's final PDF. Chesbrough, H. W., & Appleyard, M. M. (2007). Open Innovation and Strategy. California Management Review, 50(1), 57-76. (c) 2007 by the Regents of the University of California. Published by the University of California Press. Permission received from publisher.

Persistent Identifier
http://archives.pdx.edu/ds/psu/11263
Citation Information
Chesbrough, H. W., & Appleyard, M. M. (2007). Open Innovation and Strategy. California Management Review, 50(1), 57-76.