ABSTRACT
This chapter focuses on two fundamental approaches to innovation in businesses: open and closed. The fundamental concepts of these models were presented while highlighting their unique characteristics and significance in terms of companies’ operational strategies. The differences between open and closed innovation were analyzed in detail while paying attention to their processes, management and impact on the operation of organizations in respect of innovation. The processes under investigation were depicted in detail, as were their three types: inbound, outbound and coupled, and the impact they exert on developing and implementing innovation. The later part of the chapter concentrates on the role of an organization’s cooperation with other market participants in an open innovation model, while examining a corporation’s motivation to get involved in such cooperation and the obstacles to forging inter-organizational partnerships. The growing significance of startups in open innovation, including the strategies for attracting them to corporations and various models of cooperation were also discussed, such as competitions, hackathons, internet platforms, venture building, strategic partnerships, cooperation with research and development (R&D) departments, corporate incubators, corporate accelerators, corporate venture capital (CVC) funds and acquisitions. In terms of the foregoing cooperation models, how the development phases of startups can affect the application of selected models and how innovation processes are shaped in these models were analyzed.
