Innocentive and open innovation

I originally wrote about the open innovation model of Innocentive several years ago in Living Networks (see page 12 from selected excerpts from Living Networks). Last week The Economist named Innocentive’s chairman Alpheus Bingham winner of its business process innovation prize for developing the company. Innocentive was originally founded by Eli Lilly, which recognized that the solutions to specific issues in the drug development process may be easier to obtain outside the organization than by trying to do everything itself. By defining specific solutions that it is seeking, it can open participation in its R&D process to any scientist anywhere on the planet. Scientists win a pre-specified reward for solving the problem, and in return sign over the related intellectual property rights. Now other companies including Boeing, Dow, Ciba, DuPont, Procter & Gamble, and Novartis have joined Innocentive to seek their own solutions to R&D problems, helping build the critical mass which makes Innocentive a true innovation exchange. Innovation no longer needs to happen entirely in the one organization. It can be unbundled into different elements, allowing participation from the best and most relevant talent in the world. It is great to see Innocentive’s success, as this will help pave the way to more initiatives and new approaches to opening out the innovation process.