Open Innovation (OI) holds much promise as a new business model for collaborative value creation in life science. From a corporate perspective, benefits include faster access to new relevant technology; the opportunity for Biotechs and Small to Medium-sized Enterprises (SMEs) to explore new market opportunities; improved identification of relevant licensing partners and boosted value creation. It is no longer possible to look at innovation as an isolated in-house event. Instead creating new value by innovation has become an increasingly complex process involving knowledge flows across the entire ecosystem. The need to put such policies into practice is also acknowledged in international collaborations, such as the Innovative Medicines Initiative (IMI) exploring new models for public-private partnerships [3].
Open Innovation enables a more efficient dialogue between early and late stage research organizations so that relevant matchmaking can occur more often, faster and more easily, by sharing needs for innovative solutions and reducing traditional barriers during the exploration phase.
For this to happen, a common understanding of expectations and requirements is critical for truly boosting the identification of research-driven business opportunities. Transparent communication requires a common definition and standard for open innovation, to align both parties’ expectations.
In this paper we suggest a 5-level classification system for the level of openness , to reduce the contract negotiation complexity and times, between two parties looking to engage in open innovation. The intention is to systematize definitions and contractual terms for open innovation from an operational aspect in the life science industry to reduce entry barriers and boost collaborative value generation.