Learn in the textbookInnovation Theory and the Three Barriers to Commercialization
DefinitionOpen innovation (オープンイノベーション) is the idea of creating new value by bringing in outside technology and ideas held by universities, other companies and so on, while also releasing your own technology to the outside.
ExplanationThe traditional approach of keeping R&D entirely in-house is called closed innovation, and it is the counterpart of open innovation. Ways to bring technology in include joint research, partnerships with companies that own the technology, and patent licensing. Open innovation also covers offering technology you do not use to other companies, turning it into revenue or new applications.
AnalogyIt is like no longer brainstorming only in your own meeting room, and instead holding a study session that outsiders can join, then using the ideas that come up there in your products.
Memory hookIt is the same "open" as in open source, where source code is made public: open to the outside.