APAC More Open to Committing Resources for Innovation: Survey

APAC More Open to Committing Resources for Innovation: Survey
Open Innovation is no longer a buzzword and while it draws global attention, companies in the Asia-Pacific region are going all out with this model.
By Anup Varier
News Jul 12th 2012

A recent Frost & Sullivan report titled 'Open Innovation 2012' focuses on the role of Open Innovation in ideation, product development and R&D at organizations across the globe. They define Open innovation (OI) as a methodology based on the tenet that good ideas can come from anywhere—your clients, independent developers, or adjacent businesses. Ideas can be used throughout the new product development process, and that unused ideas can be utilized by other businesses, or new markets—or licensed externally.

"OI helps companies break the cycle of incremental innovation by capturing game-changing ideas and technologies. But establishing a model that effectively brings external and internal ideas and capabilities together is extremely challenging," mentions Holly Lyke-Ho-Gland, Research Lead at Frost & Sullivan in her blog.

According to this report, while companies around the world have embraced OI, some are more willing than others to commit sufficient resources to it. Asia-Pacific (APAC) companies lead the pack in regards to dedicating staff to OI. 72 percent of the companies surveyed in the APAC region dedicate a team for OI and have a median value of 10 members per OI team as opposed to global baseline of 3 members.

This is startling when compared to the global baseline where just 56 percent of the companies claim to have a dedicated OI team. The Americas fare slightly better than the global baseline at 59 percent but it's the European companies, who have stressed a need for Open Innovation for the past two years, which still lag behind their peers at 42 percent.