Home Innovation Why Open Innovation Fails— And Methods to Repair It

Why Open Innovation Fails— And Methods to Repair It

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Open innovation—the observe of purposefully managing information flows between inner and exterior sources to drive new concepts—is broadly embraced. But, many open innovation initiatives fail to ship significant outcomes. The problem isn’t simply in producing concepts; it’s in realizing who to collaborate with, when, and underneath what situations. 

As organizations more and more look past their very own partitions for enter, they need to rethink how they interact with clients, suppliers, startups, and even rivals. Henry Chesbrough, who popularized the idea of open innovation, describes this shift in his ebook Open Innovation Outcomes (2020): “Whereas the lab was once our world, it’s now the world that’s our lab.” 

This shift creates huge alternatives—but in addition complexity. With out the correct method, firms danger frustration, wasted sources, and reluctance to strive once more. In reality, 36% of organizations interact in open innovation, making it the third most used crowdsourced innovation exercise (2025 State of Company Innovation Report). Whereas this demonstrates its rising reputation, it additionally highlights that many firms nonetheless battle to maximise its potential. 

1. Maintain It Easy: Keep away from Overengineering

An overcomplicated course of can stifle information flows as an alternative of enabling them. From the fuzzy entrance finish (the place concepts are collected) to worth seize (the place concepts are validated and scaled), extreme construction and inflexible frameworks can sluggish progress. 

What Goes Flawed? 

  • Pointless Complexity: Inflexible stage-gate fashions or overly detailed portfolio administration pointers could make collaboration irritating, particularly for early-stage tasks. 
  • Poor Person Expertise: If partaking in an open innovation marketing campaign feels cumbersome, companions could disengage shortly. A sophisticated course of kills participation. 
  • Lack of Flexibility: One-size-fits-all submission or analysis varieties hardly ever work for numerous innovation eventualities. 

Methods to Repair It: 

  • Begin lean. Maintain the method minimal and concentrate on clear, actionable outcomes. You possibly can refine it over time.
  • Check the person expertise. Undergo the journey your self to establish friction factors. Would you take part should you have been an exterior accomplice? 
  • Keep adaptable. Use suggestions to refine the method and guarantee it evolves together with your wants. 

Many organizations fall into the entice of launching innovation applications with out clear alignment or construction. Liberty World realized this firsthand. When it initially launched its Spark innovation platform and program throughout a number of international locations, concepts lacked possession and alignment on account of a lacking challenge-driven method. 

By simplifying and centralizing its course of with HYPE Innovation, it launched structured “thought campaigns” with clear sponsorship and sources. The end result? Stronger engagement and a €30 million ROI from a globally scaled thought. 

2. Use Knowledge, However Don’t Lose the Human Contact

Automation and AI can speed up open innovation by aiding with development monitoring, accomplice choice, and thought analysis. Nevertheless, choices shouldn’t depend on information alone. 

What Goes Flawed? 

  • Missed Alternatives: AI tends to floor the obvious options, probably overlooking artistic “wildcard” concepts that don’t match predefined standards. 
  • Weak Relationship Constructing: Open innovation thrives on belief, serendipity and collaboration—components that algorithms can’t replicate. 
  • Poor Threat Administration: Whereas AI can flag dangers, human judgment is best at assessing cultural match and strategic alignment. 

Methods to Repair It: 

  • Keep data-informed, not data-driven. Use AI as a help software however go away last choices to skilled groups. 
  • Prioritize relationships. Spend time understanding collaborators past the numbers. Belief is essential to long-term success. 
  • Stability automation with human oversight. Use know-how to reinforce decision-making, not substitute it.

Gartner notes that many innovation failures happen as a result of organizations fixate on “shiny” know-how with out aligning it to actual buyer or enterprise wants (Gartner, 2024). This results in ineffective options and wasted sources. As a substitute, companies ought to mix technological insights with market pull elements—understanding buyer ache factors and behaviors to drive significant innovation. 

3. Shield IP With out Slowing Innovation

Mental property (IP) is a sound concern in open innovation, however focusing an excessive amount of on safety over collaboration can sluggish progress. Many organizations put up obstacles too quickly, stifling creativity earlier than partnerships even kind. 

What Goes Flawed? 

  • Worry of Litigation: Extreme authorized restrictions can discourage startups and people from taking part. 
  • Secrecy Stifles Innovation: A tradition of “Not Invented Right here” can stop precious exterior concepts from gaining traction. 
  • Wasted Assets: Over-investing in IP safety can divert consideration and funds away from precise innovation. 

Methods to Repair It: 

  • Set easy floor guidelines early. Use fundamental agreements (like NDAs) and add complexity as wanted. 
  • Stability safety and openness. Give attention to the aim of collaboration earlier than locking down IP phrases. 
  • Encourage information sharing. Innovation thrives when firms concentrate on creating worth quite than simply defending it. 


Regardless of the significance of IP safety, solely 16% of organizations have a structured method to IP administration that aligns with their innovation technique (
2025 State of Company Innovation Report). This hole usually results in uncertainty, delays, and missed alternatives for collaboration. Firms that undertake clear but versatile IP frameworks, resembling ISO 56005 (the steering normal for mental property administration), will likely be higher positioned to drive impactful open innovation partnerships.

Last Ideas: Make Open Innovation Work for You 

Open innovation isn’t nearly gathering concepts—it’s about constructing relationships, simplifying collaboration, and making knowledgeable choices. By avoiding overengineering, balancing know-how with human perception, and defending IP with out stifling creativity, organizations can flip open innovation into an actual aggressive benefit. 

Gartner notes that high innovators excel in not solely figuring out new alternatives (“The place to Play”) but in addition in scaling concepts forward of rivals (“Methods to Win”) (Gartner, 2024). Organizations trying to enhance their open innovation methods ought to assess their present approaches, establish key bottlenecks, and take motion to take away obstacles to collaboration. 

Need to make open innovation a aggressive benefit? Uncover confirmed methods in our information: Seven Keys to Managing Profitable Associate Ecosystems. 

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