Innovation and Enterprise 2 Essay Example | Topics and Well Written Essays - 1750 words

Innovation and Enterprise 2 - Essay ExampleIt is possible to apply the concept of pass on diversity on SMEs. However, Chesbrough (2006) revealed that SMEs have assorted ways to adopt with the open innovation as compared to large-scale transnational companies.Considering the growing importance of open innovation among the large-scale companies, this study will seek to evaluate and explore the relevance of open innovation on SMEs. To give the readers a better understanding of this subject matter, an overview with regards to open innovation will be provided in this study. As part of going through the main handleion, this study will first discuss how SMEs are equal to adopt to open innovation followed by evaluating and examining several existing research studies with regards to the impingement of open innovation activities over the product line performances of SMEs.Open innovation requires companies to accustom internal and external sources to deal use of technologies. In line w ith this, Chesbrough (2003) explained that the use of external pathways can increase the chances wherein companies will be able to innovate mod product and technological processes which could improve the overall performance of a company. Instead of heavily relying on internal R&D, the large-scale multinational companies were enticed to incorporate open innovation in their business practices in order to gain competitive advantages over their close business competitors (Chesbrough, 2003).The process of developing and commercializing the use of technologies within the internal boundaries of a business organization is called the closed innovation (Chesbrough, 2003). In the past, large-scale multinational companies are heavily relying over the use of their internal R&D to allow them to develop new product lines that can be easily marketed to the consumers. By doing so, large-scale multinational companies were able to outperform the SMEs (Teece, 1986). Since a