Venturing Insights #4 - The Open Innovation Network in 2024 (Part 1)
Navigating the Open Innovation Market is essential for Investors, Corporates and Entrepreneurs. Let's look at the 2024 map by Politecnico di Milano.
In Venturing Insights #2 I have introduced the concept of Open Innovation.
Open Innovation, a paradigm that transcends organizational boundaries to harness both internal and external ideas, tools, and expertise, has emerged as a cornerstone for driving innovation in today's dynamic business environment.
In this post, I want to deep-dive in the players of Open Innovation, because I believe that understanding and making connections in the landscape of Open Innovation has become paramount for corporations, venture capitalists (VCs), corporate venture capitalists (CVCs), and startups alike.
Being able to navigate the Open Innovation network is crucial
This is true for several reasons, for each of the points of view that we analyze in Open Road Ventures.
Corporates benefit by tapping into external resources like startups and research institutes, identifying new business opportunities, and fostering agility and competitiveness.
VC firms leverage this understanding to identify emerging trends, support promising ventures, and enhance their growth trajectory and market competitiveness.
For Startups, insights into this network are essential for accessing funding, mentorship, and strategic partnerships, accelerating growth, and increasing market competitiveness. By building connections within the Open Innovation network, entrepreneurs can access resources and support to scale their operations, validate their business models, and increase their market competitiveness.
The Main Players in the Open Innovation Market in 2024
The widespread adoption of the Open Innovation paradigm has led to the development of a multitude of players capable of offering services to support companies in OI projects - the "Service Providers".
However, the diversity of Service Providers and the specialization of services offered still make it difficult for companies, investors and entrepreneurs to understand the characteristics and differences, as well as identify the most suitable partners to collaborate with.
I recently came across the Italian Open Innovation Lookout 2024 by Politecnico di Milano.
This is a research and engagement project with a clear mission: to provide a guide for businesses to navigate, explore, and seize the opportunities within the Italian Open Innovation ecosystem.
Although this research is related to the Italian ecosystem, I believe that it still pretty accurate in mapping the main typologies of OI players overall.
I took the liberty of translating the 2024 map into English (many thanks to Innovation & Strategy and Lab11 for their great research!) and I have standardised the dot size that in the original version indicated the relative size of each player in the Italian 2024 lookout:
Let’s have a closer look at the main clusters of OI players:
Innovation Centers
Innovation Centers encompass a diverse cluster of service providers aimed at fostering innovation, technological transfer, and economic development.
They include entities such as Innovation Centers themselves, Corporate Innovation Hubs, Competence Centers, and Scientific and Technological Parks.
These centers serve as hubs for creating, developing, and disseminating innovative knowledge and skills, while also facilitating connections between businesses, research actors, and other stakeholders.
Their collective goal is to promote innovation, support the growth of businesses, and drive economic prosperity within local and regional entrepreneurial ecosystems.
(Open) Innovation Consulting
A consulting firm or a unit within a consultancy specialized in providing professional advisory services in the field of Open Innovation.
They assist organizations in shaping and developing tailored strategies, offering support all the way through implementation to fully leverage the opportunities provided by external collaboration, thus promoting a more effective approach to innovation.
IPR Management Firms
IPR Management Firms encompass a category of professional services related to intellectual property, offering legal, technical, commercial, and financial consultancy. They may also provide specialized marketplaces for technological transactions.
These firms can assess the economic value of industrial property assets and assist clients in buying, selling, or licensing such products, as well as in technology transfer processes.
Additionally, academic entities aim to protect, valorize, and transfer inventions from researchers to businesses. They act as intermediaries between academia and industry, assisting in invention disclosure, initial economic assessment, patentability evaluation, patent filing, licensee search, contract negotiation, and royalty monitoring. These entities are often associated with universities, as well as Scientific Institutes for Research and Healthcare (IRCSS) and Research Institutes.
OI Problem Solvers
They comprise two primary groups: Brokers, which are consultancy firms specializing in innovation design, employing individuals with expertise in addressing systemic challenges.
They offer ready-to-use solutions or strategic implementation plans collaboratively, drawing upon their internal network of solvers and frequently engaging in prototyping.
Collectors, on the other hand, act as intermediaries between companies seeking innovation solutions (seekers) and users capable of developing these solutions (solvers).
They work with seekers to define objectives, statements, and competition rules, then distribute them among solvers. Solvers whose solutions are deemed valuable by seekers receive compensation for their contributions.
Incubators & Accelerators
Incubators & Accelerators are organizations supporting startups at different stages of development.
Accelerators primarily aid already established startups in rapid growth and the establishment of a sustainable business model. They operate through highly selective programs lasting typically between 3 to 6 months, contributing to the innovation ecosystem by focusing on creating a Minimum Viable Product (MVP) and devising a feasible plan to bring the product to market.
Conversely, Incubators assist embryonic startups (pre-seed and seed stages) and those in pre-formation, offering flexible timeframes and on-demand support such as entrepreneur training, access to networks, and specialized equipment. Incubators aim to cultivate an environment conducive to innovation, collaboration, and learning, enabling startups to initiate the development of their entrepreneurial ideas.
… Stay tuned for Part 2 where we’ll explore Venture Builders & Startup Studios, Financial Players, Aggregators, Research Centers and Collaboration Spaces!