User:Alex Soto 24/Open innovation

In Startup Culture
Open innovation has allowed startup companies to produce innovation comparable to that of large companies. Although startups tend to have limited resources and experience, they can overcome this disadvantage by leveraging external resources and knowledge. To do so, startups can work in tandem with other institutions including large companies, incubators, VC firms, and higher education systems. Collaborating with these institutions provides startups with the proper resources and support to successfully bring new innovations to the market.

The collaboration between startups and large companies, in particular, has been used to exemplify the fruits of open innovation. In this collaboration, startups can assume one of two roles: that of inbound open innovation, where the startup utilizes innovation from the large company, or that of outbound open innovation, where the startup provides internal innovation for the large company. In the inbound open innovation model, startups can gain access to technology that will allow them to create successful products. In the outbound innovation model, startups can capitalize on their technology without making large investments to do so. The licensing of technology between startups and large companies is beneficial for both parties, but it is more significant for startups since their lack of resources and experience is a large obstacle for innovation.