Business Collaboration

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It is now commonly viewed that firms innovate in partnership with other actors within innovation systems. A key way in which firms benefit from collaboration is through the process known as ‘open innovation’. Open innovation is a means through which firms benefit from interactions with other firms and organisations, such as end-users, customers, suppliers, universities etc. A key charitable body in the UK, NESTA, which promotes innovation has identified the importance of these ‘hidden’ sources of innovation. Write an academic style report for NESTA examining the importance of open innovation and business collaboration (by way of an example see recent NESTA paper below ). Write from the perspective of an informed, independent analyst such as a consultant or an academic. I want you to critically examine the importance of these processes for the future growth of firms and to discuss whether this is appropriate for all firms to engage in or not. Empirically examine whether and how this is manifesting itself. What are the implications in terms of firm behaviour (both domestic and international) from these forms of inter-firm collaborations? Outline the implications of your analysis for corporate strategists and innovation policy makers. Draw on theoretical, the empirical literature and recent empirical examples to illustrate your points.

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