Outsource Innovation

Question 1

Strategic innovation

Answer 1

Reinventing corporate strategy

Question 2

Why shouldn’t outsource innovation

Answer 2

• protect intellectual property to avoid/delay becoming commodity
• competitive advantage often depends on companies trade secrets
• third party manufacturers can become competitors themselves
• lose focus on innnovation

Question 3

Why food and beverage industry example for shoudn‘t outsource innovation

Answer 3

• recipe is strong source of comp advantage

Question 4

Why firms should outsource innovation

Answer 4

• reduce costs and increase R&D productivity (leverage expertise from third party companies)
• accelerate innovation with business partners specialized in investing in early stage product development

Question 5

Private labels vs A brands

Answer 5

Private: Each retailer own range of products (loyal customer relations)
A: Brands of comp

Question 6

open innovation

Answer 6

Sourcing innovation outside of firms boundaries (could also be consumers, universities)

Question 7

Examples for open innovation

Answer 7

FREZITE: platform for product development (B2B)
Olegario fernandes: premium smart packaging for MNEs (B2B)
Tecnimede: in-licensing (get rights), out-licensing (give rights) (B2B)
Consortium bw companies and universities to develop new molecules, funded by EU: (knowledge transfer)