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INNOVATION

“OUTLINE THE ECONOMIC PRINCIPLES AND RATIONALE UNDERPINNING OPEN INNOVATION STRATEGIES. BASED ON YOUR PRELIMINARY ANALYSIS; FURTHER DISCUSS WHETER, AND THE EXTENT TO WHICH, E-GOVERNMENT STRATEGIES WILL BE BASED ON OPEN INNOVATION PRINCIPLES”.

TABLE OF CONTETS

INTRODUCTION

1. What is Innovation?........................................................................................... 4

2. Close versus Open Innovation.............................................................................. 5

3. Open Innovation Strategies ................................................................................. 7

3.1 Culture of Innovation............................................................................. 7

3.2 Intra-organizational OpenInnovation vs. Inter-organizational Open Innovation ......................................................................................... 7

3.3 Synergy .......................................................................................... 8

4. Economic Principles .............................................................................................. 9

4.1Macroeconomic Impact

4.1.1 Business Cycles .................................................................................... 9

4.1.2 Growth ................................................................................................ 10

4.1.3 Market Sizes ......................................................................................... 10

4.2 Microeconomic Impact

4.2.1Life Cycle ............................................................................................... 10

4.2.2 Cost Reduction ..................................................................................... 11

4.2.3 Competitive Environment .................................................................... 11

5. Rationale Underpinning Open Innovation............................................................ 12

6. E-government ....................................................................................................... 14

7. Literature Review .................................................................................................. 16

8. References

BIBLIOGRAPHY

INTRODUCTION

Innovation has existed for many years and evencenturies; it has been left as a record that this practice has been applied in different forms, so when talking about innovation it does not seem entirely unfamiliar only what happen through the years is an evolution of the process making modifications based on the original foundations of the principle. In other words, innovation was the starting root then open innovation came along; however at thepresent time neither of them is unknown given the fact that they have been practiced in one way or another. For instance, strategic alliances have been used for years, and this could be considered as part of an innovative appliance. Therefore, that is the starting point of a variety of alternatives offered by open innovation.

Currently, innovation has gone through an evolutionary stage, beingnamed “open innovation”. An assorted tool that added up paths to innovation thus, making the most of knowledge, moreover oriented in a group basis. Shifting from an individual innovation as observed in the industrial era to a collection of talents from people working in communities. This evolution has been appreciated by looking at geniuses working on their own developing inventions like the bulb orthe barometer to the days when people gather to transmit their knowledge looking not only for more structured and enriched ideas, but processes; that will help them lead the market.

This assignment will contrast open innovation to the traditional innovation model also known as “close innovation” however focusing on open innovation and the determinate factors that made innovation break the...
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