Open innovation—the practice of purposefully managing knowledge flows between internal and external sources to drive new ideas—is widely embraced. Yet, many open innovation initiatives fail to deliver meaningful results. The challenge isn’t just in generating ideas; it’s in knowing who to collaborate with, when, and under what conditions.
As organizations increasingly look beyond their own walls for input, they must rethink how they engage with customers, suppliers, startups, and even competitors. Henry Chesbrough, who popularized the concept of open innovation, describes this shift in his book Open Innovation Results (2020): "While the lab used to be our world, it is now the world that is our lab."
This shift creates vast opportunities—but also complexity. Without the right approach, companies risk frustration, wasted resources, and reluctance to try again. In fact, 36% of organizations engage in open innovation, making it the third most used crowdsourced innovation activity (2025 State of Corporate Innovation Report). While this demonstrates its growing popularity, it also highlights that many companies still struggle to maximize its potential.
An overcomplicated process can stifle knowledge flows instead of enabling them. From the fuzzy front end (where ideas are collected) to value capture (where ideas are validated and scaled), excessive structure and rigid frameworks can slow progress.
Many organizations fall into the trap of launching innovation programs without clear alignment or structure. Liberty Global learned this firsthand. When it initially launched its Spark innovation platform and program across multiple countries, ideas lacked ownership and alignment due to a missing challenge-driven approach.
By simplifying and centralizing its process with HYPE Innovation, it introduced structured "idea campaigns" with clear sponsorship and resources. The result? Stronger engagement and a €30 million ROI from a globally scaled idea.
Automation and AI can accelerate open innovation by assisting with trend monitoring, partner selection, and idea evaluation. However, decisions shouldn’t rely on data alone.
Intellectual property (IP) is a valid concern in open innovation, but focusing too much on protection over collaboration can slow progress. Many organizations put up barriers too soon, stifling creativity before partnerships even form.
Despite the importance of IP protection, only 16% of organizations have a structured approach to IP management that aligns with their innovation strategy (2025 State of Corporate Innovation Report). This gap often leads to uncertainty, delays, and missed opportunities for collaboration. Companies that adopt clear yet flexible IP frameworks, such as ISO 56005 (the guidance standard for intellectual property management), will be better positioned to drive impactful open innovation partnerships.
Open innovation isn’t just about gathering ideas—it’s about building relationships, simplifying collaboration, and making informed decisions. By avoiding overengineering, balancing technology with human insight, and protecting IP without stifling creativity, organizations can turn open innovation into a real competitive advantage.
Gartner notes that top innovators excel in not only identifying new opportunities (“Where to Play”) but also in scaling ideas ahead of competitors (“How to Win”) (Gartner, 2024). Organizations looking to improve their open innovation strategies should assess their current approaches, identify key bottlenecks, and take action to remove barriers to collaboration.
Want to make open innovation a competitive advantage? Discover proven strategies in our guide: Seven Keys to Managing Successful Partner Ecosystems.