Innovating Business Models with Co-Development Partnerships

Henry Chesbrough, Kevin L. Schwartz

Research-Technology Management · 2007 · 511 citations · 4 references

Concepts

TL;DR

Business model innovation is essential for sustaining open innovation, and external technology partnerships—particularly co‑development relationships—enable firms to expand their open business models, though the nature of these partnerships depends on contextual factors. The study aims to sustain co‑development relationships by carefully defining business objectives and aligning the business models of each firm. The authors propose that sustaining co‑development partnerships requires defining business objectives, aligning models, and assessing whether R&D capabilities are core, critical, or contextual.

Abstract

OVERVIEW:Business model innovation is vital to sustaining open innovation. External technology partnerships allow open business models to accomplish even more. One important mechanism for innovating one's business model is through establishing co-development relationships. The proper character of these relationships varies, depending on the context for the relationship. To sustain co-development relationships, one must carefully define the business objectives and align the business models of each firm. One should also determine whether the various R&D capabilities are core, critical or contextual. The decision to partner externally will have different implications for each of these.

References

4